Friday, January 25, 2013

Milwaukee Archdiocese Approaching Insolvency In Reorganization

The Milwaukee Journal-Sentinel reported yesterday that the Catholic Archdiocese of Milwaukee is approaching administrative insolvency in its Chapter 11 bankruptcy reorganization.  It has filed a motion asking the bankruptcy court to suspend most of its payments to attorneys and consultants. Otherwise, by April it will have a cash shortfall of $488,000. If it falls into administrative insolvency, the bankruptcy judge could appoint a trustee to manage the Archdiocese's day-to-day affairs, or could totally dismiss the case which would allow creditors to sue in state court. The Archdiocese will continue to use funds from its insurers to pay lawyers to oppose sex abuse claims.