ST. PAUL AND MINNEAPOLIS (MN)
December 28, 2017
By Martin Moylan
A federal judge has rejected competing reorganization plans for the the bankrupt Archdiocese of St. Paul and Minneapolis and ordered the church and its creditors back into mediation.
In orders released Thursday, Judge Robert Kressel said plans put forth by the archdiocese and a creditors committee made up largely of sexual abuse victims both had shortcomings.
Among other things, the judge noted that the archdiocese plan offering about $155 million had been overwhelmingly rejected in a vote of abuse victims. And Kressel said flaws in the plan advanced by abuse victims included an unrealistic reliance on lawsuits against third-parties to raise money for victims.
Kressel said he expects all parties to reach a consensual plan “providing appropriate and timely compensation to those who have suffered sexual abuse at the hands of those employed by or affiliated with the Archdiocese.”
An attorney representing victims of clergy sex abuse welcomed the nudge to resume settlement discussions.
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