Friday, January 16, 2015

St. Paul-Minneapolis Archdiocese files for bankruptcy

By Amy Forliti

ST. PAUL, Minn. (AP) — The Roman Catholic Archdiocese of St. Paul and Minneapolis filed for bankruptcy protection on Friday, saying it's the best way for the church to get as many resources as possible to victims of clergy sexual abuse.

"We're doing the right thing," the Rev. Charles Lachowitzer told The Associated Press in an interview in advance of Friday's filing in U.S. Bankruptcy Court. "This decision reflects the end of a process of putting victims first."

The archdiocese is the 12th U.S. diocese to seek bankruptcy protection in the face of sex abuse claims. Church leaders have said for months that bankruptcy was an option, as the archdiocese faces the potential for dozens of lawsuits by victims of clergy sex abuse. Those lawsuits would be put on hold while the bankruptcy case is pending.

The filing estimated the archdiocese's assets between $10 million and $50 million, with liabilities between $50 million and $100 million. It estimated 200 and 300 creditors... (continued)

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