Judge signals concerns about creditors’ plan for bankrupt archdiocese

Minnesota Public Radio

Martin Moylan St. Paul · Aug 29, 2017

A federal judge is weighing arguments he heard Tuesday about the legal soundness of two competing reorganization plans for the bankrupt Archdiocese of St. Paul and Minneapolis.

Judge Robert Kressel didn’t say when he’ll rule. But he signaled he has concerns about the plan proposed by the creditors committee and overwhelmingly endorsed by abuse victims.

The victims figure the church and insurance companies can come up with much more money than the $155 million the archdiocese has put on the table.

But Kressel said that would amount to “rolling the dice” in an effort that may or may not provide more compensation to more than 400 abuse victims. He also said he wondered if victims had “unrealistic expectations” and realize they could wait for years for some money if the archdiocese plan is not implemented.

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