July 10, 2005

Creditors OK Tucson diocese bankruptcy

Arizona Daily Sun


TUCSON (AP) -- Creditors voted to approve the bankruptcy reorganization plan for the Roman Catholic Diocese of Tucson, meaning the diocese could soon emerge from bankruptcy.

An overwhelming majority of the creditors eligible to vote on the Chapter 11 plan approved it, according to a ballot report filed Friday by diocesan attorney Susan Boswell.

The majority of creditors in a credit class or creditors representing two-thirds of the money owed must vote yes for the plan to move forward.

But the diocese had indicated it would not move forward with the plan regardless unless the most critical class of creditors -- people who were allegedly sexually abused by local clergy -- cast a majority of votes in favor of the plan.

Boswell's report said 84 percent of the 76 alleged abuse victim creditors who cast valid ballots voted to accept it.

Posted by kshaw at July 10, 2005 03:49 PM