Archdiocese bankruptcy plans face off in court

Star Tribune

By Jean Hopfensperger Star Tribune AUGUST 29, 2017

A federal bankruptcy judge will hear arguments Tuesday for two competing compensation plans for clergy abuse victims who have filed claims against the Archdiocese of St. Paul and Minneapolis.

About two dozen people are expected to testify about the plans, which aim to put an end to more than two years of legal wrangling.

The archdiocese’s financial reorganization plan includes $156 million for the more than 400 people who have filed claims of priest sex abuse.

The plan of the creditors committee, representing the abuse survivors, calls for the archdiocese to leverage more money from its insurers and to contribute more money to the victims’ fund. About $120 million of the $156 million compensation fund comes from insurance payments.

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