MILWAUKEE (WI)
Milwaukee Archdiocese Chapter 11
FROM LEXOLOGY.COM
In 2005, as the Archdiocese of Milwaukee (the “Archdiocese” or “Debtor”) faced numerous lawsuits by alleged abuse survivors, it transferred in excess of $35 million from its “Parish Deposit Fund” to its parishes and a newly created Southeastern Wisconsin Catholic Parishes Invest ment Management Trust (the “Trust”).
After the Archdiocese filed for bank – ruptcy protection on January 4, 2011 following its failure to settle more than twenty-three abuse lawsuits, the official Committee of Unsecured Creditors (the “Committee”) of the Archdiocese, which five-member com mit tee was comprised of four personal injury plaintiffs and alleged abuse survivors, investigated those transfers and alleged that they were recoverable as fraudulent conveyances.
Notwithstanding, on December 10, 2012, the United States Bankruptcy Court for the Eastern District of Wisconsin (the “Court”) held that the Committee did not have the derivative standing necessary to commence litigation seeking the avoidance and recovery of the $35 million. See In re Archdiocese of Milwaukee, 483 B.r. 855 (Bankr. E.D. Wis. 2012).
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