July 09, 2005

Tucson diocese poised to complete bankruptcy reorganization

Fox 11

06:19 PM MST on Friday, July 8, 2005

Arizona Daily Star

Creditors in the Roman Catholic Diocese of Tucson's Chapter 11 bankruptcy case have voted to accept the plan, meaning the Tucson diocese next week could become the first Catholic diocese in the country to complete a bankruptcy reorganization.

According to a ballot report filed with the bankruptcy court by diocesan attorney Susan Boswell on Friday afternoon, an overwhelming majority of the creditors eligible to vote for the plan gave it a nod of approval. At least 51 percent of creditors in a credit class or creditors representing two-thirds of the amount of money owed in a credit class must vote yes in order for the plan to move forward.

But as a gesture of goodwill, the diocese had indicated it would not move forward with the plan unless the most critical class of creditors, representing people who say they were abused as children by local clergy, gave a majority of yes votes. Boswell's report showed 84 percent of the 77 tort creditors who cast ballots voted to accept the plan and 12 percent voted to reject it.

Now all that's required for the plan to be approved is confirmation by federal bankruptcy Judge James M. Marlar. The confirmation process begins at 10 a.m. Monday.

Posted by kshaw at July 9, 2005 08:59 AM