February 01, 2005

Diocese's legal fees approach $800,000

TUCSON (AZ)
The Arizona Republic

Associated Press
Feb. 1, 2005 12:00 AM

TUCSON - The bill in the Roman Catholic Diocese of Tucson's bankruptcy case stands at nearly $800,000 after four months, according to recent court filings.

The expenses, mostly legal fees, are in keeping with what would be expected in a Chapter 11 case, bankruptcy experts said. The final tally will depend on how long the case is in court.

The Tucson Diocese, which serves 350,000 Catholics in nine Arizona counties, filed for Chapter 11 bankruptcy reorganization in September in the face of 22 pending legal actions alleging sexual abuse of children by priests. Its filing was the second by a diocese; the Archdiocese of Portland, Ore., filed in July.
The court has set a deadline of April 15 to file a claim for those who believe they were sexually abused by a diocese priest. The Chapter 11 plan could be approved this year if all creditors agreed.

Creditors, including any victims with valid claims of sexual abuse, will be paid after the diocese pays the administrative costs of the bankruptcy. Federal law requires that administrative costs be paid first.

Posted by kshaw at February 1, 2005 06:26 AM