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	US Catholic Diocese Emerges from Bankruptcy, Must Raise $48m for Sex Abuse Victims Associated Press, carried in International Herald Tribune June 2, 2007 http://www.iht.com/articles/ap/2007/06/02/america/NA-GEN-US-Church-Abuse-Bankruptcy.php Spokane, Washington: The Catholic Diocese of Spokane in this western state has emerged from bankruptcy 2 1/2 years after filing because of sex abuse cases. Now, Bishop William Skylstad and parishioners must raise $48 million (€36 million) to settle victims' claims. "This is the end of a difficult chapter for the diocese and the start of a new day for it," diocese bankruptcy lawyer Greg Arpin said Friday. "We're very pleased to come out of this tragic and difficult period, and looking forward to a new life for the Catholic Church in Eastern Washington." Skylstad, president of the U.S. Conference of Catholic Bishops, had no immediate comment, said the Rev. Steven Dublinski, a diocesan spokesman. Paperwork certifying that the 95,000-member diocese had complied with requirements set forth in a bankruptcy reorganization plan was e-mailed to lawyers Thursday, effectively marking the end of bankruptcy, Arpin said. He said the next step was to pay for the plan, which calls for dividing the $48 million (€36 million) among about 175 people who claimed they were sexually abused in the past by diocese clergy. The majority of claims involve sexual molestation of boys by priests, about nine of whom have been publicly identified. Among the claimants is a woman who said she was sexually abused by Skylstad in the early 1960s. Skylstad has denied violating his vow of chastity and said an investigator hired by his lawyer found no credence in the woman's story. Shawn Cross, another bankruptcy lawyer hired by the diocese, said he had no specifics on that claim, except that it "is not one of the ones rejected to date. It is going through the process." About 35 victims who reached settlements with the diocese will receive payments within 45 to 60 days, while the remainder will begin receiving them by the end of the year, Arpin and Cross said. A blanket claim covers people who come forward in the future. Victims will receive from $15,000 to $1.5 million (€11,000 to €1.1 million) each, depending on the severity and length of abuse. A former U.S. attorney is reviewing each claim to determine how much each person receives. Insurance settlements of $20 million (€15 million) were forwarded to a bankruptcy trustee on Thursday. Skylstad is raising $18 million (€13 million) through sales of property and contributions from Catholic entities and loans, while the diocese's 82 parishes are raising $10 million (€7.4 million). Cross said nearly $24 million (€18 million) has been raised so far. Bob Hailey, a Spokane lawyer and executive in a grass-roots capital campaign to help parishes raise their share of the settlement, said the effort was going "quite well." Parishes have an incentive to raise the money by Oct. 1 because interest begins accruing then, Cross said. The Spokane Diocese is the smallest and poorest of five in the United States that have sought bankruptcy protection against clergy sex abuse lawsuits. The others are San Diego, California; Davenport, Iowa; Portland, Oregon; and Tucson, Arizona. Tucson has emerged from bankruptcy protection, while Portland's reorganization plan also has been approved. Most dioceses in the United States have implemented new rules for reporting and dealing with clergy suspected of abusing children since the crisis unfolded five years ago.
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