MINNESOTA
The Catholic Spirit
Tom Mertens | October 12, 2016
Bankruptcy is complicated and expensive. A Sept. 21 article in the Minneapolis StarTribune about the Archdiocese of St. Paul and Minneapolis’ Reorganization efforts and how much it has cost since we filed in January 2015 painted an incomplete picture, and there are some items that need attention and clarification.
First, it is true that attorneys’ fees have topped $11 million since we filed for Reorganization, but that’s not just for lawyers representing the archdiocese. Under U.S. Bankruptcy Court rules, the organization that files for Chapter 11 is responsible for paying for all of the attorneys involved in representing court-approved committees. That means that the archdiocese also has to pay for lawyers and professionals for the Unsecured Creditors Committee (which represents sexual abuse claimants and others who have filed claims against the archdiocese) and for the Official Parish Committee (which represents all of the parishes in the archdiocese). The figure also includes costs of the court-appointed federal mediator, and court fees and expenses incurred by the official committees.
We are confident that the fees we are paying the attorneys representing the archdiocese are an investment toward a successful outcome of the Reorganization process. Our attorneys continue working with the insurance carriers that have provided coverage over the past 70 years in order to make sure that those who have been harmed receive compensation. Their efforts are bearing fruit.
You may remember that when we filed our plan for Reorganization in May, the proposed trust for victims of clergy sexual abuse was at $65 million. Thanks to ongoing mediation efforts with insurance carriers and the efforts of legal counsel, that number has substantially increased, and by an amount far exceeding any fees that have been paid for their services.
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