Spokane Diocese Files Bankruptcy Reorganization Plan

The Seattle Times reports that yesterday the Catholic Diocese of Spokane, Washington filed a reorganization plan in U.S. Bankruptcy Court. The Diocese will pay $48 million to settle claims of sex abuse victims and other creditors. U.S. Bankruptcy Court Judge Gregg Zive who has acted as mediator says that the plan calls for parishes to raise $10 million, insurers will pay about $20 million, and the Diocese will raise the remaining $18 million through sales of assets and contributions from other Catholic entities. In addition, the plan calls for the Diocese to post the names of all known abusers on its website, furnish victims a forum to talk about their experiences, and have Spokane Bishop William Skylstad identify abusive priests from the pulpits of the parishes in which they served. The plan also sets out procedures to deal with claims that are asserted in the future by sex abuse victims who have not yet come forward. The plan must still be confirmed by U.S. Bankruptcy Court Judge Patricia Williams and then voted on by creditors. The Spokane Diocese will be the third diocese to emerge from a bankruptcy reorganization.