Another Catholic diocese seeks bankruptcy after abuse deals

HARRISBURG (PA)
Associated Press

February 19, 2020

By Mark Scolforo

The Roman Catholic Diocese of Harrisburg, Pennsylvania, filed for bankruptcy Wednesday, six months after disclosing it had paid millions of dollars to people sexually abused as children by its clerics.

The diocese joins at least 20 others across the United States in seeking protection from creditors through the federal bankruptcy system, but it is the first diocese in Pennsylvania to take such a step.

In August, the diocese said it paid 106 people a total of just over $12 million to compensate for claims of sexual abuse they suffered as children from its clerics, deacons and seminarians. Six others did not accept payment offers from the diocese.

The filing in Harrisburg federal bankruptcy court said the diocese “faces potentially significant exposure from remaining claimants” and wants Chapter 11 reorganization to provide money for unresolved claims and perform its ministry and other operations.

The diocese told the court it has more than 200 creditors and estimated liabilities between $50 million and $100 million, with assets of less than $10 million. It listed creditors that include a $30 million loan from the Pennsylvania Economic Development Financing Authority and 12 blacked-out names that were represented by lawyers.

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