Bankruptcy Blog

By Mike Finnegan
Jeff Anderson & Associates
January 16, 2015

http://www.andersonadvocates.com/Archdiocese-of-Saint-Paul-and-Minneapolis-Bankruptcy-Blog.aspx

[accused Minnesota offenders]

Welcome to our Bankruptcy Blog. I am an attorney working with Jeff Anderson and a team of lawyers on the Archdiocese of Saint Paul and Minneapolis bankruptcy cases in St. Paul. Our firm, Jeff Anderson & Associates, has been working with survivors of clergy sexual abuse for over 30 years.

The purpose of this blog is to be a source of information and commentary on the news coming out of the Archdiocese of Saint Paul and Minneapolis bankruptcy court process. As motions are filed by the parties and orders issued from the court, I will provide interpretations of court documents so readers are better able to understand what is happening on a weekly basis.

Current Status

As of today, January 16, 2015, the Archdiocese of Saint Paul and Minneapolis has filed for Chapter 11 bankruptcy. Chapter 11 bankruptcy is a liquidation bankruptcy process in which the debtor, the Archdiocese, maintains control of its business and property while the court supervises its restructuring and the implementation of a plan to repay creditors. The creditors in this case consist mainly of individual survivors of sexual abuse by priests or other employees of the Archdiocese.

What Does This Mean For Survivors?

We will file cases on behalf of survivors of sexual abuse who were abused by clergy in the Archdiocese of Saint Paul and Minneapolis who we represent. The cases will be filed in bankruptcy court instead of state court. Just because the Archdiocese filed for bankruptcy, does not mean that the Archdiocese is or will go out of business. They have filed for reorganization rather than liquidation and will still be operational during and after the bankruptcy. We are experienced in this area of law and have handled several other diocesan bankruptcy cases before.

Claims Bar Date

An important part of this process provides that the court set a “claims bar date,” which is a date marking the deadline by which all survivors must formally file a claim with the court. After the claims bar date, a survivor will be precluded from bringing a claim and could be denied any sort of recovery from the Archdiocese. The bankruptcy court has yet to establish a claims bar date but we expect the court to do so in the coming months.

Creditor’s Committee

The United States Trustee will appoint members to the creditor’s committee. A creditor’s committee is common in bankruptcy court and serves as a representative body for all creditors. The committee is charged with negotiating with the Archdiocese and creating a plan to repay all creditors. Throughout the process, the creditor’s committee will watch the Archdiocese’s operation, look into its finances, and perform other actions consistent with its reorganization.

New posts will go up as events occur so check back often to find summaries of filings, court orders, meeting notes, and general updates on the court’s progress.