MILWAUKEE (WI)
Milwaukee Journal Sentinel
By Annysa Johnson of the Journal Sentinel
Jan. 24, 2013
The Archdiocese of Milwaukee is hemorrhaging money on legal and professional fees as a result of its bankruptcy and will be unable to pay its monthly operating expenses beginning in April unless the judge suspends those payments, it says in court documents filed Thursday.
The archdiocese filed a motion asking U.S. Bankruptcy Judge Susan V. Kelley to allow it to suspend all payments to attorneys and consultants, except $125,000 for work on its plan of reorganization. And it would continue to pay its own attorneys to challenge sex-abuse claims with proceeds from its insurance carriers.
“Without it, we will be unable to continue operating. We’ve used all the money we had from savings, reserves, investment earnings and money budgeted for litigation,” archdiocese spokesman Jerry Topczewski said.
“This is a reorganization, not a liquidation,” he said, “and under bankruptcy law, the goal for Chapter 11 is to keep the organization operational.”
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