Endgame may be near in Twin Cities archdiocese bankruptcy case

MINNESOTA
Minnesota Public Radio

Martin Moylan St. Paul · Dec 15, 2016

The bankruptcy reorganization of the Archdiocese of St. Paul and Minneapolis is about to enter its third year. But there is a chance that the church could reach a settlement with hundreds of sex abuse victims and emerge from bankruptcy by summer.

A court hearing scheduled for Thursday will focus on how well the archdiocese and creditors can explain their separate plans to the people who would vote on them, including some 450 sexual abuse victims seeking compensation. There will also be a discussion about voting procedures and counting the results.

The archdiocese envisions a vote by spring and a conclusion of the bankruptcy by mid-year, said Charles Rogers, an archdiocese attorney.

“We have $155 million, potentially more than $160 million, set aside at this time for a victim fund,” Rogers said. “We have the parameters of a plan that we believe is eminently workable. It is now for the court to determine what plan is voted on and how we proceed.”

The plan also seeks a court order protecting parishes and their insurers from future lawsuits by victims who’ve filed claims in the archdiocese bankruptcy.

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