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  Final Mediation Sessions Begin in Spokane Diocese Bankruptcy

KNDO/KNDU
September 13, 2006

http://www.kndo.com/Global/story.asp?S=5409264

Spokane, Wash. Lawyers representing the Catholic Diocese of Spokane and victims of clergy sexual abuse are meeting today in Reno, Nevada in a final attempt to settle bankruptcy claims.

Little has come out of the two previous rounds of mediation because U-S Bankruptcy Court Judge Gregg Zive in Reno has asked all parties not to publicly talk about it.

U-S Bankruptcy Court Judge Patricia Williams of Spokane is overseeing the case and plans to hold final hearings and sign off on a plan of reorganization early next year.

That plan would outline the diocese's strategy for emerging from Chapter 11 bankruptcy court protection and how it would pay sex abuse victims.

Bishop William Skylstad has said the diocese can raise between 30 (m) million dollars and 35 (m) million dollars from insurance settlements and sales of diocese property.

Skylstad's offer to pay 45 (m) million dollars to 75 claimants was rejected by Williams, who says a final settlement must deal with all claimants, estimated to be about 150 people.

After the bishop's offer was rejected, lawyers representing some of the victims said they would consider filing suits against individual parishes.

 
 

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