Wednesday, September 24, 2014

New Mediation Efforts In Milwaukee Archdiocese Bankruptcy Fail

The Catholic Archdiocese of Milwaukee announced yesterday that its second attempt at mediation with the creditors' committee and abuse victims in its bankruptcy reorganization has failed.  The sticking point is whether some $50 million held by a Cemetery Trust for perpetual care of Archdiocesan cemeteries will be available to Archdiocese creditors.  That issue is currently on appeal to the 7th Circuit after a federal district court held that the Trust asssets were not available to creditors. (See prior posting.)  The Archdiocese has already incurred over $15.4 million in legal fees and expenses in the bankruptcy reorganization.