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reorganization

Local News

Judge denies both Reorganization plans, directs parties to return to mediation

“We look to engage with all participants in mediation as directed by the judge to bring a prompt and fair resolution,” Tom Abood, chairman of the archdiocese’s reorganization task force, said in the statement.
Local News

Fate of bankruptcy plans in judge’s hands

Counsel for multiple parties with interests in the matter, including representatives of the archdiocese, parishes, insurers and clergy sexual abuse claimants, presented objections to the plans before Judge Robert Kressel in U.S. Bankruptcy Court in Minneapolis Aug. 29.
Local News

Court hears objections to Reorganization plans

In considering the Unsecured Creditors Committee’s objections to the archdiocesan plan, Judge Robert Kressel questioned whether UCC counsel Robert Kugler was trying to “inflame” his clients with misleading claims about the archdiocese’s plan and assets.
Local News

Archbishop Hebda: Goal is ‘fair compensation as soon as possible’ for victims

In a March 26 letter and video statement to local Catholics, Archbishop Bernard Hebda said that the Archdiocese of St. Paul and Minneapolis is hoping to soon resolve its Chapter 11 Reorganization and provide fair compensation for victims/survivors of clergy sexual abuse.
Local News

New Ulm diocese files for bankruptcy in response to clergy sex abuse claims

The Diocese of New Ulm filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code March 3 in response to 101 lawsuits related to clergy sexual abuse claims made against it. The lawsuits were filed during the Minnesota Child Victims Act’s three-year lifting of the statute of limitations that ended May 25, 2015.
Local News

Bankruptcy judge appoints future claims representative

In a move that further enhances the chances a $14 million settlement secured by the Archdiocese of St. Paul and Minneapolis with Catholic Mutual Insurance will become available to victims, U.S. Bankruptcy Court Judge Robert Kressel approved a future claim representative in the archdiocese’s ongoing Chapter 11 Reorganization case at a Feb. 9 hearing.
Local News

At bankruptcy’s two-year mark, creditors will soon vote on plan

As the Archdiocese of St. Paul and Minneapolis marks the two-year anniversary of entering Chapter 11 bankruptcy, it anticipates that two different plans for Reorganization will be put before creditors for a vote in February. A court order is expected to establish a 30-day timeline for ballots to be mailed to creditors, including more than 450 sexual abuse claimants. The archdiocese’s bankruptcy proceedings are the first among more than a dozen bankruptcies of U.S. dioceses that involve competing plans for Reorganization.
Local News

Bankruptcy judge: Creditors committee can’t sue parishes, schools for transferred funds

A federal court judge ruled Jan. 12 that a committee representing creditors of the Archdiocese of St. Paul and Minneapolis would not be permitted to file lawsuits against Catholic entities, including schools and parishes, that received payments from the archdiocese in the two years before it filed bankruptcy in January 2015.
Local News

In revised Reorganization plan, archdiocese allocates more than $133M to victims

After months of negotiations with insurance carriers, the Archdiocese of St. Paul and Minneapolis filed an amended plan for Reorganization Nov. 15 that increased compensation for victims of clergy sexual abuse to more than $133 million.
Local News

Victims seek $80M from archdiocese in Reorganization plan

Three months after the Archdiocese of St. Paul and Minneapolis filed a plan for Reorganization in its bankruptcy proceedings, the committee representing sexual abuse claimants filed its own plan Aug. 22 that seeks approximately $80 million in compensation from the archdiocese.
Local News

Victims’ attorneys appeal judge’s decision not to consolidate parish, archdiocesan assets

A committee representing sexual abuse claimants filed Aug. 10 to appeal a bankruptcy court judge’s ruling that declined to consolidate the assets of the Archdiocese of St. Paul and Minneapolis with those of parishes and other Catholic entities in the archdiocese’s bankruptcy process.
Local News

Judge: Parishes, other Catholic entities will not be forced to merge assets with archdiocese in bankruptcy proceedings

“Even if I had the authority to substantively consolidate the debtor with non-consenting, eleemosynary [nonprofit] non-debtors, the committee failed to allege sufficient facts to support substantive consolidation,” Judge Robert Kressel wrote in a 10-page decision.
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