June 02, 2005

Diocese one step closer to bankruptcy reorganization plan

TUCSON (AZ)
Fox 11

06:16 PM MST on Wednesday, June 1, 2005

By Stephanie Innes / Arizona Daily Star

A federal bankruptcy judge on Wednesday overruled all objections to the Roman Catholic Diocese of Tucson's amended disclosure statement, marking a major step toward confirming the diocese's Chapter 11 bankruptcy reorganization plan.

Judge James M. Marlar's rulings indicate he will approve the diocese's disclosure statement, which accompanies the bankruptcy plan. The diocese filed for bankruptcy reorganization protection Sept. 20, becoming the second diocese in the nation to seek federal protection in the face of continued litigation over claims of sexual abuse by clergy.

Hearings to confirm the reorganization plan are scheduled for July 11-15. The Bankruptcy Court has logged 103 claims against the diocese, but they must be approved by the court as valid before claimants are eligible to receive any settlement money.

A committee of five people appointed to represent tort claimants — all who say they have been in some way affected by the church's sexual abuse crisis — filed a motion Friday disputing 74 of the claims.

The next hearing in the case is set for 9 a.m. on Tuesday, June 14 when proposed settlements with about 30 claimants could be approved.

Posted by kshaw at June 2, 2005 07:34 AM