Milwaukee archdiocese, bankruptcy creditors to enter mediation

MILWAUKEE (WI)
Milwaukee Journal Sentinel

By Annysa Johnson of the Journal Sentinel

July 3, 2012 1:34 p.m.

The Archdiocese of Milwaukee and its bankruptcy creditors, most of them known or alleged victims of sexual abuse, agreed Tuesday to enter mediation, a signal that one of the nation’s largest Catholic Church bankruptcies to date may be nearing a resolution.

At the request of the parties, U.S. Bankruptcy Judge Susan V. Kelley ordered as mediator retired U.S. bankruptcy judge Randall Newsome of San Francisco. Newsome has served as chief judge of the U.S. Bankruptcy Court in the Northern District of California.

The decision comes amid rising legal fees and after weeks of court-ordered settlement talks in a case described by one court official as a “scorched earth legal battle.”

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