It is with gratitude that I stand here today, after what has been an extremely difficult time for so many in our community, to announce an agreement to resolve the bankruptcy of the Archdiocese. The proposed plan, establishes a trust fund of $210 million will soon be made available to resolve the claims against the Archdiocese. Abuse survivors could expect payments soon after the court approves the plan. At the same time, by means of this consensual plan, the Archdiocese and its parishes bring definitive resolution to this matter in a way that avoids further litigation and that allows the local Church to carry on with its mission of spreading and living the gospel of Jesus Christ.
The settlement we announce today is the product of years of work. The bankruptcy process, with its procedures and protections, is very time consuming. Five months ago, Judge Kressel ordered the bankruptcy participants back to mediation. In doing so he noted the passage of time has a negative impact on everyone involved and implored all of us to look beyond what the law might entitle us to do or demand and find compromise.
The Archdiocese of Saint Paul and Minneapolis has reached an agreement with abuse survivors, all parishes and related Catholic entities that will resolve the bankruptcy. Archbishop Bernard Hebda and Tom Abood, chair of the Archdiocesan Finance Council, will address the media during a news conference. The news conference was streamed live on the Archdiocese’s Facebook page.
From Thomas J. Abood, Chair, Reorganization Task Force, Archdiocese of Saint Paul and Minneapolis
Today, Judge Kressel approved the plan of reorganization of the Crosiers on schedule with the objections of the Archdiocese and parishes addressed in negotiation prior to the hearing. Despite commentary from others last week, the Archdiocese never sought to block the Crosiers’ plan of reorganization or its settlement with victims/survivors and doing so would not have benefited the Archdiocese in any way.
From Thomas J. Abood, Chair, Reorganization Task Force of the Archdiocese of Saint Paul and Minneapolis
The Archdiocese is committed to maximizing its resources available to compensate victims and to reach a prompt consensual result in its bankruptcy case through the mediation ordered by Judge Kressel. The availability and value of its insurance is at the heart of these resources. The Archdiocese filed its objection in the related Crosier matter to ensure the preservation of insurance rights for the benefit of the victim creditors in its case. The Archdiocese fully expects that its filing, as well as the similar filing by the Crosiers in the Archdiocese case, will be resolved in a way that does not delay confirmation of a plan in either case.