Archdiocese, creditors clash over bankruptcy assets
By May. 27, 2016, National Catholic Reporter
Starkly conflicting views of total assets have placed the St. Paul-Minneapolis archdiocese and its creditors at dramatic odds, with the latter claiming that the archdiocese's just-released reorganization plan represents 1 percent of total assets they say approach $2 billion.
On Thursday, May 26, the archdiocese filed its reorganization plan with the U.S. Bankruptcy Court of the District of Minnesota. The plan proposes $65 million to establish an independent trust through which it would settle the 440 claims made by survivors of clergy sexual abuse.
The trust is to be funded by a combination of archdiocesan cash, property sales, insurance settlement proceeds, and contributions from parish insurance settlements.
The archdiocese said that the $65 million figure surpasses what has been proposed in a majority of already diocesan bankruptcies. In a statement, newly installed Archbishop Bernard Hebda urged . . .