Reorganization plans sent out for vote

| March 22, 2017 | 0 Comments

About 1,500 plan solicitation packages for the Archdiocese of St. Paul and Minneapolis’ Reorganization were mailed March 17, marking a significant step as the archdiocese seeks to provide $155 million in compensation for clergy sexual abuse victims and resolve its Chapter 11 bankruptcy.

Creditors — which include about 450 clergy sexual abuse claimants, as well as parishes and vendors — may have the opportunity to vote on two plans, one put forward by the archdiocese and the other by the Unsecured Creditors Committee.

Under the archdiocese’s plan, more than $155 million, less expenses, would be placed in a trust for the benefit of sexual abuse claimants soon after a final plan is approved by the judge.

The UCC plan seeks $80 million in victim compensation, much of which hinges on the archdiocese hypothetically obtaining a $38 million loan. The UCC plan also largely rejects the $115 million in the archdiocese’s plan already secured through insurance negotiations, instead reserving the opportunity to pursue insurers after Reorganization, which could lead to additional years of litigation.

Mailed packets include one or more ballots, if applicable, and copies of both plans and disclosure statements. Ballots are due May 1. Votes will be tabulated and reported to the court by May 10.

“Sexual abuse claimants now have an opportunity to look at two alternative plans, and with the full disclosure of the risks and benefits of each plan, make an informed decision about how they are going to proceed,” said Charles Rogers, an attorney representing the archdiocese.

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Category: Local News