Judge weighs competing plans in Minnesota archdiocesan bankruptcy case
June 19, 2017
A federal bankruptcy-court judge had begun hearing arguments on the merits of two proposed settlements in the case of the Archdiocese of St. Paul-Minnesota: a plan submitted by the archdiocese and another plan offered by lawyers for sex-abuse victims.
The victims’ lawyers have been highly critical of the archdiocesan plan, claiming that it withholds valuable assets. When the court offered victims an opportunity to choose between the two plans, they voted overwhelmingly for their own lawyers’ proposal.
However, Judge Robert Kressel cautioned that the archdiocese is not required by law to liquidate all its assets in order to satisfy creditors. The judge also chastised victims’ lawyers for using “inflammatory” language in their arguments.
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