Parishes will join creditors in Minnesota archdiocesan bankruptcy proceedings
May 12, 2015
A federal court has given parishes of the Archdiocese of St. Paul and Minneapolis a formal role in the bankruptcy proceedings for the archdiocese.
A committee representing the 187 parishes will be included among the creditors of the archdiocese in mediation talks aimed to settle debts and reorganize the finances of the archdiocese.
The parishes, which have claims against archdiocesan insurance revolving-loan funds, will join a group of victims of sexual abuse on the creditors’ committee. Other creditors had initially opposed inclusion of the parishes, saying that they were arms of the diocese. But Judge Robert Kressel disagreed, ruling that the financial interests of the parishes were easily distinguishable from those of the archdiocese.
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- Twin Cities parishes will participate in archdiocese bankruptcy (Pioneer Press)
- Parishes get more say in Twin Cities archdiocese bankruptcy (Star Tribune)
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