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Bankruptcy
Protection and the Sexual Abuse Crisis
The Portland archdiocese and the Tucson diocese have filed
for bankruptcy protection from their creditors (including victims
of sexual abuse by priests) after settling large abuse cases, and
the Davenport diocese considered bankruptcy protection before settling
with 37 victims. The Spokane diocese has decided to file for Chapter
11 protection after a settlement "could not be reached."
Below we offer an archive of materials relating to bankruptcy and
church finances, including legal documents, statements by bishops
and victims, news, and analysis.
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This page offers videos of media reports
on diocesan bankruptcy, helpful links,
and sections of articles and documents relating to church
finances and bankruptcy in general; church
assets and real estate; the bankruptcy filings or possible filings
in Spokane, Portland,
Tucson, and Davenport;
relevant articles about finances in other
dioceses, and sample diocesan financial
reports.
Judy Valente's report
on Tucson is a good place to begin (a transcript with a link to the
video). Then see a brief
and useful overview by an analyst not involved in the disputes. The
actual Portland
and Tucson
bankruptcy petitions are available here, as is the Portland
advertisement informing victims that they must come forward before a deadline.
See also two opposing views on bankruptcy as an option, from the bishops'
general council and from a legal
scholar. The Boston Herald's detailed inventory
of unused Boston archdiocesan property is thought-provoking. Many
other documents are available below, and these links will be updated regularly.
Please suggest
items we should add. Thanks for visiting!
Video Reports on the
Bankruptcy Issue
* Tucson
Bankruptcy Dilemma, by Judy Valente (8/20/04) [for 10-minute RealPlayer
feature, click in the video box at this link] The transcript
of this report is available below.
* L.A.
Archdiocese Financial Crisis, Judy Valente (7/11/03) [for 7-minute
RealPlayer feature with footage on diocesan valuation methods, click in
the video box at this link]
Helpful Links
* Diocese
of Spokane
* Archdiocese
of Portland Web page with some materials on the bankruptcy filing
* Diocese
of Tucson, Chapter 11 Financial Reorganization Web page
* Diocese
of Davenport, home page with links to some bankruptcy materials
* Catholics
for Spiritual Healing, a bankruptcy-related Web site in the Davenport
diocese
* Filing
Chapter 11 Bankruptcy, by BankruptcyLawFirms.com, with brief articles
on bankruptcy topics.
* Financial
Administration, from Archbishop:
Inside the Power Structure of the American Catholic Church, by Thomas
J. Reese, S.J.
Church Finances and
Bankruptcy in General
* Sexual
Abuse Hits Church Finances, by Peter Gould (4/15/02)
* The
Economic Strain on the Church, by William C. Symonds (4/15/02)
* The
U.S. Catholic Church: How It Works, in Business Week (4/15/02)
* Q&A:
A Talk with the Vatican's Moneyman, by Gail Edmondson, interviewing
Cardinal Edmund C. Szoka (4/15/02)
* A
New Chapter, by Fred Naffziger (10/21/02)
* What
Happens When a Church Goes Bankrupt, by Brad Knickerbocker (7/9/04)
* L.A.
Archdiocese Financial Crisis, by Judy Valente (7/11/03)
* Bankruptcy
Won't Touch Most Assets, Diocese Says, by Stephanie Innes (7/11/03)
* Did
the Portland Catholic Archdiocese Declare Bankruptcy to Avoid or Delay
Clergy Abuse Suits? by Marci Hamilton (7/13/04)
* Churches
Weigh Going Bankrupt to Escape Suits, by Marie Beaudette (7/28/04)
* Catholic
Diocese of Tucson Files Plan of Bankruptcy Reorganization, by Jack
Siegel (9/22/04) [prompted by the Tuscon bankruptcy filing
but relevant to all such filings]
Diocesan Assets and
Real Estate
* Roman
Catholic Bishop, by Jennifer Levitz (8/18/02) on the finances and
real estate holdings of the Providence RI diocese
* Diocese
Details Sale of Property, by Jennifer Levitz (4/15/02) on real estate
owned by the diocese of Providence RI
* "Land Rich" {1}
{2},
by Jack Sullivan and Eric Convey, with a table
of land owned by the Boston archdiocese (also sorted
in descending order of assessment value), a Boston
Herald editorial, and a reply
to this analysis printed in the Pilot, the archdiocesan weekly
newspaper. (8/27/02)
* AG Gains
Oversight of Assets at Parishes, by Michael Paulson (8/18/04)
* Bid
to Freeze Diocese Assets Is Rejected, by Onell R. Soto (10/6/04)
Diocese of Spokane
* Talks
Fail to Settle Spokane Diocese Lawsuits, by By Nicholas K. Geranios
(11/5/04)
* Spokane
Diocese to File for Bankruptcy, by John Wiley (11/10/04)
* Press
Statement, by Bishop William S. Skylstad (11/10/04)
* Statement
Regarding Spokane Diocese Bankruptcy, by Michael Ross, SNAP (11/10/04)
* I
am convinced that Chapter 11 provides justice for everyone involved,
by Bishop William S. Skylstad (11/11/04)
* New
Bishops' Head from Troubled Diocese, by Rachel Zoll (11/15/04)
* Bishops'
New President Has Released Names of Accused Priests, by Rachel Zoll
(11/16/04)
* U.S.
Bishops Pick Leader from Bankrupt Diocese, by Alan Cooperman (11/16/04)
* Catholic
Bishops, After a Divisive Debate, Choose a New Leader, by David D.
Kirkpatrick (11/16/04)
* New
Head of US Bishops Faces Scrutiny, by Michael Paulson (11/16/04)
* Catholic
Bishops Pick New President, by Ann Rodgers (11/16/04)
* Church's
Lingering Scandal, editorial in the San Francisco Chronicle (11/16/04)
Archdiocese of Portland
* Archbishop
Utters Bankruptcy, by Shelby Oppel and Ashbel S. Green (6/18/03)
* Voluntary
Petition, by Archbishop John G. Vlazny (7/6/04) [redactions of certain
names and initials in this bankruptcy document were made by BishopAccountability.org]
* Letter
Announcing Bankruptcy, by Archbishop John G. Vlazny (7/6/04) and PDF
copy
* Archdiocese
of Portland Files Chapter 11 Bankruptcy, by Ed Langlois (7/7/04)
* Archdiocese
of Portland, Ore., Declares Bankruptcy, by Alan Cooperman (7/7/04)
* Archdiocese
in Portland Declares Bankruptcy, by Janet I. Tu and Stuart Eskenazi
(7/7/04)
* Diocese
in Ore. Files for Chap. 11, by Michael Paulson (7/7/04)
* Religious
Aspects Complicate Bankruptcy, by Ashbel S. Green (7/8/04)
* Perspectives:
Archdiocese of Portland Bankruptcy, interview of Mark Chopko by Bob
Abernethy (7/9/04)
* Archdiocese
on Uncharted Path, by Jeff Kosseff (7/12/04)
* Statement
Alleges Archdiocese Ignored 5 Warnings, by the Associated Press (7/13/04)
* Did
the Portland Catholic Archdiocese Declare Bankruptcy to Avoid or Delay
Clergy Abuse Suits? by Marci Hamilton (7/13/04)
* Archdiocese
of Portland's Bankruptcy Filing Turns Eyes to Vatican, by Janet I.
Tu (7/13/04)
* U.S.
Archdiocese in Bankruptcy Court Asks Permission to Pay Workers, by
Catholic News Agency (7/16/04)
* Bankruptcy
Filing: A Chance to Heal, by John G. Vlazny (7/20/04)
* In
Bankruptcy Case, Key Questions Center on Archdiocese’s Status as
Trustee, by Ed Langlois (7/20/04)
* Bankruptcy
Seen As Dioceses' Shelter, by Jeff Kosseff and Jim Barrett (8/2/04)
* Legal
Notice to Survivors of Deadline to File Claims, by the Archdiocese
of Portland, and the legal
document that describes the deadline process (8/18/04)
* A
Dangerous Precedent? by Brian K. O'Neel (10/31/04)
Diocese of Tucson
* Editorial:
Bankruptcy May Be Best for Diocese, by Tucson Citizen (7/8/02)
* 7
Young Men Look to "Our Day in Court," by Stephanie Innes
(7/11/04)
* Bankruptcy
Won't Touch Most Assets, Diocese Says, by Stephanie Innes (7/11/03)
* Bishop
Kicanas Denies ‘Conspiracy’ in Announcing Possible Bankruptcy,
by Catholic News Agency (7/15/04)
* Pope
Defrocks Tucson Priests, by Scott Simonson and Tom Beal (8/6/04)
* Diocese
Nears Threshold on Bankruptcy, by Stephanie Innes (8/16/04)
* Tucson
Bankruptcy Dilemma, by Judy Valente (8/20/04)
* Voluntary
Petition, filed by the Diocese of Tucson (9/20/04)
* Plan
of Reorganization, filed by the Diocese of Tucson (9/20/04)
* Disclosure
Statement, filed by the Diocese of Tucson (9/20/04)
* Letter
to Abuse Victims, by Bishop Gerald F. Kicanas (9/20/04)
* Letter
to Church Members, by Bishop Gerald F. Kicanas (9/20/04)
* Roman
Catholic Diocese of Tucson Files for Bankruptcy over Abuse Cases,
by Arthur H. Rotstein (9/20/04)
* Statements
Regarding Tucson Diocese Bankruptcy, by David Clohessy and Jim Parker
(9/20/04)
* Tucson
Diocese Files Bankruptcy Reorganization, by Sheryl Kornman (9/20/04)
* Bankruptcy
Timeline, by the Tucson Citizen (9/20/04)
* Timeline
of Diocese's Troubles, by the Arizona Daily Star (9/21/04)
* Diocese's
Chapter 11 Bankruptcy Is "Prepackaged," by David Wichner
(9/21/04)
* Diocese
Seeks Bankruptcy Protection, by Michael Clancy (9/21/04)
* Facing
Sex Abuse Suits, Tucson Diocese Seeks Bankruptcy Protection, by the
Catholic News Service (9/21/04)
* Catholic
Diocese of Tucson Files Plan of Bankruptcy Reorganization, by Jack
Siegel (9/22/04)
* Diocese
of Tucson Files for Bankruptcy, by Business News (9/24/04)
* Tucson
Diocese Victims Have 6 Months to File Claim, by Michael Clancy (10/08/04)
* Panel
of Alleged Abuse Victims Appointed in Diocese Bankruptcy Case, by
Associated Press (10/24/04)
* Victims
Group Denied Role in Diocese Case in Tucson, by Associated Press (10/26/04)
Diocese of Davenport
* Remarks
on the Possibility of Bankruptcy, by Bishop William E. Franklin (9/30/04)
* Davenport
Diocese Contemplates Bankruptcy over Sex Abuse Suits, by Todd Ruger
(10/1/04)
* Davenport
Diocese Talks Money, by Shirley Ragsdale (10/1/04)
* Bishop
Says Abuse Scandal Could Force Diocese into Bankruptcy, by Todd Dvorak
(10/1/04)
* Priests
React to Bankruptcy Warning, by Mike McWilliams (10/2/04)
* Diocese
Hopes to Settle Claims, by Shirley Ragsdale (10/2/04)
* Letter,
by Bishop William E. Franklin (October 6, 2004)
* Parishioners
Seek Bankruptcy Details, by Todd Ruger (October 6, 2004)
* Letter
to Bishop Franklin, by Catholics for Spiritual Healing (October 6,
2004)
* Groups
from 10 Parishes Ask Davenport Diocese Bankruptcy Meetings, by the
Associated Press (October 7, 2004)
* Leaflets
Encourage Involvement in Diocese, by Des Moines Register News Services
(October 10, 2004)
* Letter,
by Bishop William E. Frankin (October 16, 2004)
* Diocese:
Schools Safe If Chap. 11, by Craig T. Neises (10/20/04)
* Iowa
Diocese Says It's Near Bankruptcy, by Ryan J. Foley (10/21/04)
* Diocese
Clear: Settlements or Bankruptcy, by Todd Ruger (October 21, 2004)
* Delay
in Sex Abuse Suits Denied, by Todd Ruger (10/22/04)
* Diocese
Motion Denied, by Warren Kitts (October 22, 2004)
* Judge
Denies Diocese's Request to Delay Trial, by Shirley Ragsdale (October
22, 2004)
* Diocese
Begins Cutting Staff As Trial Date Nears, by Todd Ruger (October 23,
2004)
* Davenport
Diocese Cuts Staff after Judge's Ruling, by the Associated Press (October
23, 2004)
* Davenport
Diocese Starts Layoffs After Judge's Ruling, by the Hawk Eye
(October 23, 2004)
Other Dioceses
* Perspectives:
Bankruptcy Implications for Boston Archdiocese, by Bob Abernethy interviewing
Michael Paulson (12/6/02)
* L.A.
Archdiocese Financial Crisis, Judy Valente (7/11/03)
* AG Gains
Oversight of Assets at Parishes, by Michael Paulson (8/18/04)
* Attorney:
Covington Diocese Looking at Bankruptcy, by the Associated Press (10/23/04)
Sample Diocesan
Financial Reports
Diocese of Belleville IL
- Financial
Statements and Independent Auditor's Report (June 30, 2003)
- Financial
Statements: The Catholic Community Foundation for the Catholic Diocese
of Belleville (June 30, 2003 and 2002)
Archdiocese of Los Angeles
- Financial
Results (January 24, 2003)
- Questions
and Answers (January 24, 2003)
- Financial
Highlights of the Affiliated Organizations within the Archdiocese
(January 24, 2003)
- Combined
Financial Statements and Report of Independent Certified Public Accountants
(June 30, 2003 and 2002)
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