Tuesday, November 10, 2015

Court Confirms Reorganization Plan of Milwaukee Archdiocese

The Milwaukee Journal-Sentinel reports that yesterday U.S. Bankruptcy Judge Susan V. Kelley confirmed the bankruptcy reorganization plan of the Archdiocese of Milwaukee.  The Archdiocese filed for bankruptcy in 2011 under the pressure of clergy sex abuse claims.  Yesterday's reorganization plan is summarized by the Wall Street Journal:
The terms of the settlement divide nearly 600 abuse victims into separate groups. About 350 victims will share the bulk of the $21 million settlement, and about another 100 victims will each receive $2,000, court papers show. About 120 remaining victims, who had previously settled with the archdiocese or otherwise didn't qualify for the settlement, won’t receive any monetary compensation. It also provides a total of $250,000 for victims who come forward in the future, plus $500,000 from the archdiocese’s parishes to provide therapy for victims in any group.
Over $20 million in legal fees have been run up during the protracted bankruptcy proceedings.  Fox News reprints a statement from the Archdiocese on the approval of the plan and a letter sent to Pope Francis on behalf of the first victims to publicly come forward-- deaf survivors who were abused at the St. John's School for the Deaf.