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Judge Signals Concerns about Creditors' Plan for Bankrupt Archdiocese
On Tuesday, August 29th, 2017, Judge Kressel expressed concerns over two proposed plans to end bankruptcy protections for the Archdiocese of St. Paul and Minneapolis. At latest hearing, he didn’t issue a ruling, but he wasn’t supportive of the plan that has been submitted by the creditors. It appears that the sexual abuse victims are confident that the church can come up with more money and are willing to take the risk of losing the initial $155 million that has been offered.
South Dakota Catholic Church Sexual Abuse Lawyer
Judge Kressel was clear in warning victims that there is no guarantee that further mediation would result in a higher number. What is clear is that a return to negotiations would further delay payment and prevent potential recipients from receiving payments for any number of years. While Judge Kressel took the time to outline these obvious disadvantages of the proposals, he still has to rule on the legal viability of both plans. If both plans are legally sound, he will have to go back and consider them from a financial standpoint and made a final decision.
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One of the attorneys working for the Archdiocese claims that the church has made the best possible offer to victims. He appears to think that the claimants won’t be able to get a larger sum because increasing the pot would leave the church unable to pay its employees and keep facilities operating.
However, the representative for the victims seems to think that the church is being less than forthcoming with its actual value. It is difficult to estimate just how much money the archdiocese has because insurance plans and funds and available to both parishes and the diocese. He supports his clients in their efforts to push for more money although some victims fear being used as a pawn in a long-running and expensive legal game.
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They think that continuing to demand more of the church will only wear down the victims’ efforts and result in more legal fees, which is already closing in on $20 million. While nothing has been finalized, this most recent development does mark a major step in bringing the entire process to a close. All that remains to be seen is exactly how Judge Kressel will rule following his initial concerns. Hopefully, all parties can reach an agreement that they can accept so that everyone can move forward and the community can begin to heal.
Catholic Church Sexual Abuse Lawyer South Dakota
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