MINNESOTA
Star Tribune
By Jean Hopfensperger Star Tribune JUNE 15, 2017
The Archdiocese of St. Paul and Minneapolis was back in bankruptcy court Thursday, as U.S. Judge Robert Kressel heard objections to the competing victim settlement plans.
A key issue was whether the plan put forth by attorneys for the clergy abuse victims complied with Chapter 11 bankruptcy law, which allows an organization to reorganize its debt. The victim’s plan would tap what attorneys say is $1 billion in archdiocese property and assets not accounted for in the archdiocese’s settlement plan.
“Chapter 11 doesn’t expect a body to liquidate its assets,” Kressel told the court. “It doesn’t mean [the archdiocese] is not complying with bankruptcy code.”
Kressel also labeled “inflammatory” some of the language used in court documents filed by victims’ attorneys when describing the archdiocese’s proposed settlement. The archdiocese had filed a motion seeking the removal of the language, which attorneys did.
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