Lawyer: Archdiocese moved assets before bankruptcy filing
ALBUQUERQUE, N.M. (AP) — A creditors committee of clergy abuse survivors believes the Archdiocese of Santa Fe moved assets to hinder creditors before it filed for bankruptcy protection, a lawyer said.
Attorney James Stang told a federal judge Monday that the committee may seek standing in the case to challenge the movement of assets, the Albuquerque Journal reports.
“The committee is ready to move forward on standing motions to avoid fraudulent conveyances that we believe occurred when the archdiocese corporately reorganized,” Stang said. “We believe there’s a basis for us bringing those fraudulent conveyance actions.”
The contention came as parties in the Chapter 11 case were in court updating a federal Bankruptcy Court judge on the status of mediation. Around 400 people have filed notices with U.S. Bankruptcy Court alleging they were harmed and are owed damages tied to abuse by priests and other clergy working in the archdiocese, which has acknowledged that abuse occurred.
In court filings, the committee says offers and counteroffers have been exchanged, but the archdiocese and creditors have not been able to reach an agreement on terms of a reorganization plan. A third mediation session is scheduled for next week.
The committee says one impediment has been a move by the archdiocese before filing for bankruptcy to incorporate all of its parishes and to transfer substantial property to a real estate trust of which the archdiocese and parishes are beneficiaries. A substantial amount of money was also moved into a trust, the panel says.
Ford Elsaesser, an attorney representing the archdiocese, said good faith mediation continues and he was hopeful litigation involving church assets could be avoided.
He declined to comment on the details of the negotiations.
Archbishop John C. Wester has said in the past that he decided to file for reorganization to ensure that all claims of child abuse survivors, including those who come forwa...
Winter Appeal 2023
To our friends,
2023 has been a long year with many ups and downs for us all. As we close out the year, we at SNAP hope that you are feeling like you are on your way to being healthy, fulfilled, and happy. This past year has brought both successes and challenges. Thanks to the support you have shown in the past, we’ve been able to celebrate the good days and weather the stormy ones. Now, we are once again asking for your support as we work to support survivors new and old as we ‘Move SNAP Forward.’
At SNAP we are proud to have hosted a very well-attended conference in August 2023. This event allowed us to gather friends, survivors, advocates, and allies for a weekend of camaraderie and connection. We were so happy to be able to welcome many first-time attendees to gather in person and are already looking forward to the next conference.
To strengthen our movement for justice, healing, and prevention, SNAP will be expanding our peer support and providing more volunteer opportunities in the coming year. Through this great work, we are ensuring survivor voices are represented as we work for significant change that will benefit children and survivors.
Right now, survivors worldwide are getting the help they need from SNAP, and more and more reach out to us daily, but we need your help to keep those programs going and get our volunteers the training they need to thrive.
Your tax-deductible gift to SNAP can help offset the cost of our important mission. If you are not in a position to contribute, you can still support us by sharing this letter with those who can. As we continue to fight for survivors across the globe, your donation or sharing the great work SNAP does will help us continue our work to protect the vulnerable, heal the wounded, and prevent abuse.
Your donation ensures SNAP will be there for those who need us more than ever!
Warmly,
Michael W. McDonnell, C.P.S.
Interim Executive Director