FRESNO (CA)
Visalia Times-Delta [Visalia CA]
January 23, 2025
By Steve Pastis
Despite initial expectations, the Roman Catholic Diocese of Fresno did not file a petition for Chapter 11 bankruptcy with the United States Bankruptcy Court last summer, and no filing date has yet been announced.
The “court-supervised reorganization” was initially announced in an open letter in May 2024, and explained as a response to claims of sexual abuse made against clergy in the diocese.
“After much consultation and careful thought, I have decided that the diocese will file a petition for Chapter 11 bankruptcy with the United States Bankruptcy Court in 2024,” wrote the Most Rev. Joseph V. Brennan, bishop of the diocese, in the open letter. “I expect to file that petition in August.”
Filing for Chapter 11, according to the Brennan, would allow the church to address the “substantial number of claims brought forth by victims collectively.” He went on to say that the total expense required to resolve the claims could result in the dioceses being rendered insolvent.
“In that original announcement, we said August,” said Chandler Marquez, director of communications for the diocese. “When August came around, we sent out an internal communication, letting our parishes and pastors know that we needed to delay the process.
“We wanted to make sure that we were taking the time and the steps to make sure we could achieve those goals, and better prepare for the filing of the petition for Chapter 11 bankruptcy,” Marquez explained. “So, that’s what the delay is due to.
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“We don’t have a timetable yet,” he added. “We’re simply just making sure that everything is organized very thoroughly for the filing.”
The United States Courts website describes Chapter 11 of the United States Bankruptcy Code as a “reorganization” bankruptcy, stating, “Usually, the debtor remains ‘in possession,’ has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.”