Diocesan Financial Reorganization
By Bishop LeVoir
Roman Catholic Diocese of New Ulm
March 3, 2017
On March 3, 2017, the corporation of the Diocese of New Ulm filed for financial reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Chapter 11 provides a neutral, court-supervised process for the Diocese of New Ulm to establish a plan to pay its creditors while continuing work essential to its mission.
The Diocese’s creditors are victims and survivors of clergy sexual abuse as minors who filed a total of 101 lawsuits against the Diocese and some parishes within the geographic area the Diocese serves under the Minnesota Child Victims Act. That Act lifted the civil statute of limitations for a period of three years, ending on May 25, 2016. The lifting of the civil statute of limitations allowed people to file claims of sexual abuse, regardless of when that abuse happened. Most of the abuse claims stem from incidents reported to have occurred from the 1950s through the 1970s. No priests accused of abuse are currently in public ministry in the Diocese.
The Diocese and those representing victims and survivors will continue to work together, under the guidance of the court, to come to a fair resolution of claims. It is unknown how long this will take, but we seek to complete the reorganization process as promptly and efficiently as possible.
Parishes, Catholic schools and other Catholic organizations located in the geographic area served by the Diocese are not part of this filing. Parishes and other Catholic organizations are separate corporations under Minnesota law.