Tuesday, March 03, 2020

Buffalo Catholic Diocese Files For Bankruptcy Reorganization

The Catholic Diocese of Buffalo (NY) announced last week that it has filed for bankruptcy reorganization, saying in part that the petition has:
a primary aim of enabling financial resolution for the most number of individuals who have filed claims under the Child Victims Act - a year-long window that opened on August 14, 2019 that suspends the statute of limitations related to allegations of past sexual abuse.  A further objective of reorganization is that it allows the Diocese to continue uninterrupted its mission throughout Western New York, while working to settle claims with existing Diocesan assets and insurance coverages....
Parishes of the Diocese are separately incorporated under New York State's Religious Corporation Law and not included in today's filing. Similarly, Catholic elementary and secondary schools are also not part of the Chapter 11 case, given that they are owned by parishes or are separately incorporated entities. Catholic Charities of Buffalo, with its extensive ministries that serve residents throughout Western New York, providing critical social services, is also separately incorporated under New York's Not for Profit Corporation Law and will not be part of the filing. This is also true for the Diocese's capital and endowment Campaign - Upon This Rock.
The Bradford Era reports on the filing.