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	Diocese Moves toward Bankruptcy End with $5 Million Payment Catholic Online October 1, 2007 http://www.catholic.org/national/national_story.php?id=25544 SPOKANE, Wash. — In what Bishop William S. Skylstad called "just one small step toward healing for the victims," the Diocese of Spokane was to wire $5 million Oct. 1 to a trust account set up to pay the claims of those sexually abused by clergy in the diocese. The payment to the Plan Trustee Trust Account, as stipulated by the bankruptcy reorganization plan approved in April, brings the diocese "one step closer to fulfilling the requirements of the plan and concluding the Chapter 11 reorganization," Bishop Skylstad said in a Sept. 27 statement. A payment of $1 million remains and must be made by Oct. 1, 2009, he said. Bishop Skylstad said the diocese "has incurred approximately $3.4 million in debt to date, which includes payment for trade creditors by January 2008." He said he would "continue fundraising to reduce the level of debt, so that ministry support in eastern Washington can continue." Under the terms of the settlement plan, the 176 childhood victims of abuse by priests or other church personnel in the diocese will receive compensation ranging from $15,000 to $1.5 million, depending on several factors, including the severity of the abuse and whether or not the statute of limitations had run out before the claim was made. "I extend my apologies to all victims for the harm done to them," Bishop Skylstad said. "I hope all victims will accept my sincere sorrow and regret for the damage done to them. I pray for them each day, and ask that they pray for me and for the church in eastern Washington." The 82 parishes of the Spokane Diocese have committed to raise $10 million toward the total $48 million settlement. Another $20 million was paid from insurance, and various entities such as Catholic Charities, diocesan cemeteries and a youth camp and retreat center contributed $6.4 million. About $5 million was to be raised from the sale of diocesan property, including the chancery building and a 1,000-acre farm. Bishop Skylstad said that all property slated for sale has been sold, except for the property from the Immaculate Heart Retreat Center, which remains on the market. In a separate Sept. 27 statement, the Association of Parishes, an organization formed during the bankruptcy specifically to defend parish property interests, said nearly $7 million has been sent to the trust account so far. "The rapidity with which the parishes have been able to provide nearly $7 million does not reflect their ready access to sequestered funds," the statement said. "The people in the pews have been incredibly generous – and they have made real financial sacrifice – often using personal savings, even portions of Social Security or retirement payments to facilitate resolution of the diocese's bankruptcy case." That generosity "is evidence of their living faith," the association added. "They have desired not only to bring finality to the diocese's bankruptcy litigation but also to help provide just compensation for the victims of sexual abuse by priests and other church ministers. Most importantly, ... the faithful wish to return in concerted fashion to the ministry and mission of the church." The bankruptcy court imposed a 6 percent interest penalty beginning this Oct. 1 on any portion of the $10 million not deposited by that date.
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