St. Cloud Diocese declares bankruptcy

Star Tribune

June 15, 2020

By Jean Hopfensperger

The Diocese of St. Cloud filed for bankruptcy in U.S. Bankruptcy Court Monday, just weeks after reaching a $22.5 million settlement with clergy abuse survivors.

The Chapter 11 bankruptcy filing provides a “framework for resolution” of the clergy abuse claims filed by 70 individuals against 42 priests dating to the 1950s, the diocese said.

The diocese announced its intent to file for bankruptcy in 2018 to pay for the claims, and has been negotiating with attorneys for the survivors since.

“This Chapter 11 reorganization represents the diocese’s commitment to finding a fair resolution for survivors,” said the diocese news release announcing the filing.

“It’s been a long haul, a long process, for survivors,” added survivors’ attorney Mike Finnegan. “We’re glad that they’re on the path to resolution and putting the lawsuits behind them.”

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