Wednesday, February 12, 2014

Bring out your dead's trust funds

The Associated Press reports at CNS News on the announcement by our Archdiocese of Milwaukee of a plan of bankruptcy reorganization.

The plan includes payment of $4 million on claims arising from sexual abuse of children by diocesan priests. This will be financed, in part, by borrowing $2 million from the perpetual care trust for Archdiocesan cemeteries. That loan will be secured by mortgages on some real estate owned by our Archdiocese.

Update 1:05 pm: Our Archdiocese's Communication Office issued a press release which purports to provide a "summary of the Plan of Reorganization". It makes no explicit mention of the involvement of cemetery trust funds.

Update 1:20 pm: Archbishop Listecki issued an Extra edition of his "Love One Another" messages on the plan. He includes an explanation of borrowing from the cemetery trust. He also explains,

"The costs of the bankruptcy are the responsibility of the archdiocese and the Plan must outline how we expect to pay those bills. ...

"So although we hope to emerge from Chapter 11 soon, because of all these expenses, we will emerge with at least $7 million of debt."

Assuming the plan is approved, it remains as hard as ever to see how our Archdiocese comes out ahead by having filed for Chapter 11 and by its particular approach to it. But I'll be interested to see any analysis from bankruptcy specialists.

Update February 13th 6:43 pm: Here is the 125 page proposed reorganization plan. The court has scheduled a February 18th telephone conference with the lawyers to schedule a hearing on approval of the plan.

No comments:

Post a Comment