Abuse victims protest Milwaukee archdiocesan plan for reorganization after bankruptcy
April 07, 2014
A restructuring plan offered by the Archdiocese of Milwaukee, which is seeking to emerge from bankruptcy, has been condemned by a group representing sex-abuse victims as “a morally repugnant attempt to shield essentially all of its assets.”
The contentious Milwaukee bankruptcy process, which has already cost millions of dollars in legal fees, enters a new phase this month as the archdiocese presents its plan to creditors. Along with the sex-abuse victims, insurers for the archdiocese have registered objections to the plan as well. If the federal court does not approve the archdiocesan plan, the bankruptcy process could continue for many months, adding substantially to the associated legal costs.
The Milwaukee archdiocese has rejected the claims of abuse victims that the proposed plan unfairly shelters assets. A spokesman for the archdiocese said that lawyers representing the abuse victims were raising questions that had already been settled by the court.
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