Diocese bankruptcy: Matano says it was ‘a very difficult and painful decision’

ROCHESTER (NY)
Rochester Democrat and Chronicle

Sept. 12, 2019

By Steve Orr

The Roman Catholic Diocese of Rochester, facing potentially huge judgments for past sexual abuse by its priests and other ministers, filed for bankruptcy protection Thursday morning.

“This was a very difficult and painful decision,” Rochester Bishop Salvatore Matano said at an afternoon news conference that detailed the action.

The diocese filed its petition for Chapter 11 reorganization in the U.S. Bankruptcy Court in Rochester at about 9:30 a.m. The petition estimates the diocese’s assets as $50 million to $100 million — and its financial liabilities as $100 million to $500 million.

Rochester’s diocese becomes the first of New York state’s eight dioceses — and the 20th nationwide — to seek protection from creditors in bankruptcy court because of financial fallout from the Catholic Church’s decades-long child sexual abuse scandal.

The Roman Catholic Diocese of Rochester filed for bankruptcy on Sept. 12, 2019. The Diocese held a press conference talking about why they did that. Bishop Salvatore R. Matano read from a prepared statement before answering questions with Lisa Passero CFO for the diocese, and Stephen Donato, with the law firm, Bond, Schoeneck, and King that is representing the diocese in the bankruptcy, beside him.Buy Photo
The Roman Catholic Diocese of Rochester filed for bankruptcy on Sept. 12, 2019. The Diocese held a press conference talking about why they did that. Bishop Salvatore R. Matano read from a prepared statement before answering questions with Lisa Passero CFO for the diocese, and Stephen Donato, with the law firm, Bond, Schoeneck, and King that is representing the diocese in the bankruptcy, beside him. (Photo: Tina MacIntyre-Yee/Rochester Democrat and Chronicle)

The bankruptcy filing does not mean the diocese is penniless and does not mean its churches will close.

The intent of a Chapter 11 filing such as this is to reorganize the diocese’s finances, marshal funds to pay fair compensation to sex-abuse accusers and create a plan for the diocese to continue operations much as they were before.

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