Archdiocese: Crosier plan objection aims to secure compensation for abuse claimants

ST. PAUL and MINNEAPOLIS (MN)
The Catholic Spirit

March 16, 2018

By Maria Wiering

Leaders of the Archdiocese of St. Paul and Minneapolis said its legal objection filed against the Crosier Fathers and Brothers’ plan for reorganization aims to help victims/survivors of clergy sex abuse, not stymie the Crosiers’ reorganization process.

“The archdiocese is committed to maximizing its resources available to compensate victims and to reach a prompt consensual result in its bankruptcy case through the mediation ordered by Judge Kressel. The availability and value of its insurance is at the heart of these resources,” said Thomas Abood, chairman of the archdiocese’s reorganization task force, in a March 15 statement.

“The archdiocese filed its objection in the related Crosier matter to ensure the preservation of insurance rights for the benefit of the victim creditors in its case,” he added. “The archdiocese fully expects that its filing, as well as the similar filing by the Crosiers in the Archdiocese case, will be resolved in a way that does not delay confirmation of a plan in either case.”

Attorneys for the archdiocese filed the objection with the U.S. Bankruptcy Court March 14 in order to have the plan amended in a way that would preserve the compensation obligations of insurers affected by both the Crosiers’ and archdiocese’s Reorganization efforts. The Crosiers and the archdiocese are among Catholic entities in Minnesota that separately filed for Reorganization following the 2013 lifting of a statute of limitations by the Minnesota State Legislature, which ushered in a wave of historic sexual abuse claims.

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