Archdiocese files for bankruptcy

From The Minneapolis Star Tribune: 

The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy protection Friday, saying it cannot meet its financial obligations from an unprecedented wave of clergy sex abuse lawsuits.

The move freezes lawsuits against the church, protecting the archdiocese from creditors while allowing it to develop a reorganization plan.

“I make this decision because I believe it is the fairest and most helpful recourse for those victims/survivors who have made claims against us,’’ wrote Archbishop John Nienstedt on the archdiocese’s website Friday morning.

“Reorganization will allow the finite resources of the Archdiocese to be distributed equitably among all victims/ survivors. It will also permit the Archdiocese to provide essential services required to continue its mission within this 12-county district.’’

Archdiocese officials have said such a move was a financial necessity, as it faced more than 20 lawsuits from people who charge they were sexually abused by priests. More than 100 other lawsuits are pending.

The bankruptcy filing does not provide precise figures on archdiocese finances. It showed estimated liabilities of $50 to $100 million, estimated assets of $10 to $50 million, and estimated creditors of 200 to 999.

All of the top 20 creditors listed in the filing are representatives of victims of clergy sex abuse, which is typical of church bankruptcy filings nationally.

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