Archdiocese to File Plan of Reorganization in Chapter 11 Proceedings

By Bret Lemoine
Fox 6
February 12, 2014

http://fox6now.com/2014/02/12/archdiocese-to-file-plan-of-reorganization-in-chapter-11-proceedings/

[with video]

MILWAUKEE (WITI) — The Archdiocese of Milwaukee announced on Wednesday, February 12th that it is filing its Plan of Reorganization in its Chapter 11 proceedings.

“As an Archbishop, I can say immediately — my profound sorrow, shame, hurt — that this has ever occurred,” said Milwaukee Archbishop Jerome Listecki.

The plan will establish a $500,000 Lifetime Therapy Fund for abuse survivors. $4 million will also be available to provide financial settlements for abuse survivors with eligible claims. The Archdiocese will have an operation plan to continue its ministry in the community. The plan will also solidify the organization’s commitment to preventing child sex abuse within the church.

“Hopefully, this plan going forward allows us, basically all of us to go forward,” said Listecki. “

To help pay the cost of bankruptcy, the Archdiocese will use its remaining unrestricted assets and property as collateral for a loan. That could include buildings like the Cousins Center. When the dust settles, the Archdiocese will be $7 million in debt.

“We are people who have addressed this issue and because we’ve addressed this issue, we have not allowed evil to triumph,” said Listecki.

The plan will not be reviewed by a judge.