Agreement Reached With Abuse Claimants In Alaska Diocese Bankruptcy

In February 2008, the Catholic Diocese of Fairbanks, Alaska filed for Chapter 11 reorganization under the federal Bankruptcy Code. (Press release.) According to AP, at a status hearing on Tuesday in federal bankruptcy court, it was disclosed that a preliminary agreement has been reached with clergy abuse victims for settlement of their claims. The nearly 300 victims will be awarded almost $10 million from Diocese funds. However, a portion of that amount will be set aside to use to pursue the Diocese's four insurance companies for additional amounts of up to $100 million. The remainder of the $10 million will be divided among claimants based on the severity of the abuse they suffered. Many of the prior filings in the Chapter 11 case are available from the Diocese website.