Challenge Grant: Our Boosters will match donations up to $45,000. We have $38,470 to go. Please donate!
Click here to advertise on CatholicCulture.org

Milwaukee archdiocesan bankruptcy case sent to mediation

Catholic World News - July 31, 2014

A federal bankruptcy-court judge has sent the case of the Milwaukee archdiocese to mediation, in a fresh effort to avoid further prolonged litigation.

"The point of this is to try to negotiate a resolution quickly and stop the legal fees," Judge Susan Kelley said as she announced her decision to order mediation. The contentious bankruptcy proceedings, begun in January 2011, have to date failed to produce a plan for reorganizing the finances of the archdiocese that would satisfy creditors. An earlier attempt at mediation, in 2012, failed.

The judge's new order made a direct reference to the enormous legal fees generated by the lengthy proceedings. The archdiocese now faces $14 million in fees-- a sum likely to dwarf the payments to sex-abuse victims, whose claims led to the bankruptcy filing. Judge Kelley approved an immediate payment of about $1.4 million to attorneys, with that sum divided equally between the creditors' lawyers and those representing the Milwaukee archdiocese.

Additional sources for this story
Some links will take you to other sites, in a new window.

An appeal from our founder, Dr. Jeffrey Mirus:

Dear reader: If you found the information on this page helpful in your pursuit of a better Catholic life, please support our work with a donation. Your donation will help us reach seven million Truth-seeking readers worldwide this year. Thank you!

Our Fall Campaign
Progress toward our year-end goal ($125,848 to go):
$150,000.00 $24,151.70
84% 16%
Sound Off! CatholicCulture.org supporters weigh in.

All comments are moderated. To lighten our editing burden, only current donors are allowed to Sound Off. If you are a donor, log in to see the comment form; otherwise please support our work, and Sound Off!

There are no comments yet for this item.

Fall 2014 Campaign
Subscribe for free
Shop Amazon
Click here to advertise on CatholicCulture.org

Recent Catholic Commentary

Ignatius Press into the Breach: Trumping the Kasper Proposal 4 hours ago
Has the Vatican finally discovered how to avoid inaccurate English translations? 8 hours ago
The Synod: It's a Wrap! October 21
A chaotic synod? Not in its results October 21
Cardinal Kasper's unsubtle threat October 21

Top Catholic News

Most Important Stories of the Last 30 Days
Key synod report calls for 'gradualism' in Church response to irregular family situations CWN - October 13
As synod concludes, bishops issue message, approve document; Pope weighs in CWN - October 20
Cardinal Parolin: UN must protect innocents from Islamic State CWN - September 30
Synod of Bishops opens with Mass in St. Peter’s Basilica CWN - October 6