Martin Moylan St. Paul, Minn. Jan 16, 2015
With three clergy abuse lawsuits nearing trial and worries mounting over the cost of future claims, the Archdiocese of St. Paul and Minneapolis on Friday filed for bankruptcy protection.
• Documents: Explore the filing
The archdiocese in its filing listed assets of between $10 million and $50 million and liabilities of $50 million to $100 million.
The documents appear to indicate the archdiocese has limited financial resources, said Jeff Anderson, a St. Paul attorney who’s represented many alleged victims of clergy sex abuse. He added, however, that he believes the archdiocese insurance coverage is sound.
However, he said, he believes the archdiocese insurance coverage is sound.
The Chapter 11 filing immediately buys the archdiocese time to try to reorganize its troubled finances as it faces huge potential costs tied to clergy abuse. Instead of handling claims through civil suits, alleged victims will likely need to file claims in federal court as creditors of the archdiocese. The bankruptcy filing will also halt the coming civil court trials, which were set to begin Jan. 26.
• Explained: The archdiocese has filed for bankruptcy. Now what?
The archdiocese did not immediately respond to requests for comment. Church officials, however, are expected to hold a news conference on the matter later today.
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