May 19, 2005

Diocese bankruptcy closer to resolution


There was a hearing Thursday morning in Federal Bankruptcy Court over how to settle sexual abuse claims against the Diocese of Tucson.

All major parties walked out of the courtroom predicting Tucson's Diocese could be the first in the country to emerge from Chapter 11 bankruptcy.

Lynne Cadigan, an attorney representing victims, says, "What happened today is all the major parties have reached an agreement."

Dioceses in Tucson, Portland and Spokane all filed for bankruptcy court protection after they were sued by people claiming sexual abuse by priests.

Now, it appears Tucson's church, victims and creditors could agree to a payment plan and a judge could approve it by July 14th.

Posted by kshaw at May 19, 2005 08:14 PM