Thursday, January 16, 2014

JS: Milwaukee Archdiocese's bankruptcy plan is in the works

Three years after it declared bankruptcy as a way to deal with its mounting sex abuse claims, the Archdiocese of Milwaukee is poised to file the reorganization plan that will detail how it compensates abuse victims and operates as an institution into the future.

The archdiocese is preparing that plan, but it has offered few hints about its content or when it might be filed in U.S. Bankruptcy Court in Milwaukee.

While the reorganization plan is a significant step toward exiting bankruptcy, legal scholars suggest that exit could still be a long way off. Even then, the legal battles could go on for years.

"This is not the end game. There will be multiple objections on multiple bases," said Pamela Foohey, a professor at the University of Illinois College of Law in Champaign, who specializes in bankruptcy law.
...
In the three years since its filing, Listecki has rarely, if ever, been made available to the Milwaukee Journal Sentinel to discuss the bankruptcy.   And the archdiocese's lawyers generally do not comment on the case. Jerry Topczewski, Listecki's chief of staff, said in an email, however, that the plan would include a "lifetime therapy fund" for victims and allow the archdiocese to continue its ministries.

"It's been three years since our Chapter 11 petition was filed, and it is time for the archdiocese to return its focus to its ministry of charity, service and education," Topczewski said. "Outreach to abuse survivors will always be part of that ministry.
Read more from Journal Sentinel: http://www.jsonline.com/specialreports/archdiocese/milwaukee-archdiocese-is-ready-to-file-bankruptcy-plan-b99180350z1-240195521.html#ixzz2qZWhNLVl
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