Portland Archdiocese Reorganization Plan Nears Confirmation

In an opinion issued Friday in the bankruptcy proceedings of the Portland, Oregon, Catholic Archdiocese, federal bankruptcy judge Elizabeth Perris indicated that she would confirm the Archdiocese's proposed plan of reorganization if one change is made in it. An exculpation clause in the plan must be narrowed to exclude potential liability of the Archdiocese for failing to disclose certain confidential settlement information as required by a prior court order. As summarized by an Associated Press report, under the plan some 175 victims of priest sexual abuse will settle their claims for $52 million. Another $20 million will be set aside for those who come forward after an agreed deadline. Finally, up to $3.8 million has been set aside to pay for claims that have not been settled in the bankruptcy negotiations. The court rejected an argument that this last amount is too small. (See prior related posting.)