CALIFORNIA
Turlock Journal
By Sabra Stafford
Crime Desk sstafford@turlockjournal.com 209-634-9141, ext. 2002
The Diocese of Stockton announced this week that a judge has approved their bankruptcy plan, including the establishment of a $15 million trust for survivors of sexual abuse committed by church officials.
On Tuesday a judge from the U.S. Bankruptcy Court for the Eastern District of California approved the Roman Catholic Bishop of Stockton’s consensual Plan of Reorganization. The plan provides $15 million through cash contributions and a promissory note to fund a trust for the exclusive benefit of survivors of clergy sexual abuse; provide non-monetary commitments such as therapy and counseling; payment of at least 50 percent of what is owed to general unsecured creditors; and restructuring of secured loans.
The plan received nearly unanimous approval in voting by the sexual abuse survivors and other creditors, according to the Diocese.
The Roman Catholic Bishop of Stockton filed for Chapter 11 bankruptcy protection in January 2014 after a series of costly sexual abuse settlements left them financially drained. Once the Diocese made the decision to file for bankruptcy they began a notification process that over the course of three months led to 34 new claims of sexual abuse.
Note: This is an Abuse Tracker excerpt. Click the title to view the full text of the original article. If the original article is no longer available, see our News Archive.