Creditors reject archdiocesan reorganization plan in Minnesota bankruptcy case
May 12, 2017
Sex-abuse victims voted overwhelmingly to reject a bankrutpcy settlement offered by the Archdiocese of St. Paul-Minneapolis, Minnesota, in favor of an alternate plan put forward by creditors.
In December a federal bankruptcy court had given the abuse victims an opportunity to vote their preference between the two proposed settlements. The archdiocesan plan would provide for an immediate $13 million payment to abuse victims. The creditors’ plan calls for $80 million in payments to victims; it also requires the archdiocese to release the results of an internal investigation into alleged sexual misconduct by Archbishop John Nienstedt, who resigned under pressure in 2015.
The vote by creditors is not binding; the bankruptcy court could still choose to approve the archdiocesan plan.
Lawyers for the creditors have sparred for months with the archdiocese, arguing that church officials have concealed the financial assets of the archdiocese, and demanding higher payments.
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