May 28, 2005

$20 million ceiling on payouts to victims lifted in diocese's latest court filing

TUCSON (AZ)
Fox 11

05:20 PM MST on Friday, May 27, 2005

Arizona Daily Star

Victims of sexual abuse by clergy with valid claims against the Roman Catholic Diocese of Tucson could be paid from a pot of more than $20 million.

A revised "amended disclosure statement" that accompanies the diocese's federal Chapter 11 bankruptcy reorgnization plan was filed late Thursday in federal court.

The revised statement says the diocese's minimum contribution to settlements with victims is $15.7 million, with additional money contributions possible as the diocese continues to pursue settlements with insurers.

A previous disclosure statement had proposed capping the settlement contribution at $20 million, but that ceiling limit was removed in the new document.

Creditors have until Tuesday to file objections to the new statements. A hearing in front of federal bankruptcy judge James M. Marlar is scheduled for 1:30 p.m. Wednesday.

Posted by kshaw at May 28, 2005 08:33 AM