Friday, March 23, 2007
Portland Archdiocese Bankruptcy Reorganization Moves Ahead
Portland, Oregon's Catholic Sentinel reports that parishioners in western Oregon will receive notice this week of a proposed settlement in a class action lawsuit over whether parishes, schools and certain funds are available to pay claims of the Catholic Archdiocese of Portland. The Notice (full text) says that in the settlement no property of schools or parishes will be used to pay debts of the Archdiocese. Parishes and schools will receive a discharge from all liabilities of the Archdiocese. Then the Archdiocese will restructure itself, Parishes and Schools into various charitable trusts or nonprofit religious corporations, separate from the reorganized Archdiocese. Property will be transferred among the new entities in a way that does not diminish the Archdiocese's ability to make payments under the plan of reorganization.