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Milwaukee Catholic Archdiocese moves forward on reorganization plan

Bankruptcy
Bankruptcy

MILWAUKEE (WTAQ) - The Milwaukee Catholic Archdiocese took a small step forward Thursday to reorganize its finances and get out of its three-year-old bankruptcy.  

Federal Judge Susan Kelley agreed to work toward approving a disclosure statement, so creditors can learn details of the church's reorganization plan before voting on it.  

Most of the 575 creditors said they were sexually abused many years ago by priests and others in the archdiocese. Kelley said the church needs to do more to explain why it created groups of creditors to be compensated, instead of just giving them money and have them divvy it up.  

Only 128 abuse victims would share about $4 million in damages -- while almost 450 others would get nothing.  

The archdiocese has claimed that it's only liable for abuse caused by its own priests -- and those abused by lay people and ministers in religious orders should ask them or their groups for compensation.  

The victims said the archdiocese is responsible for all priests and lay people working in its 10 county territory.  

Judge Kelley was hoping to set a date Thursday for a hearing on the church reorganization plan -- but both sides could not agree on how to proceed. She'll try again Tuesday.

(Story courtesy of Wheeler News Service)

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