Wednesday, October 17, 2012

Mediation With Victims Fails In Milwaukee Archdiocese Bankruptcy

The Milwaukee Journal Sentinel reports that bankruptcy court-ordered mediation between the Catholic Archdiocese of Milwaukee and 575 victims of sexual abuse has failed after 3 months. Both sides confirmed on Monday that the talks have broken down. The victims represent the largest class of creditors asserting claims in the Archdiocese's Chapter 11 bankruptcy proceedings. This means that the claims will be back in court, with victims seeking to expand the assets that are considered part of the bankruptcy estate, while the Archdiocese seeks to assert defenses to reduce the number of claims eligible for compensation.