The planned move delays the start of the trial of two lawsuits seeking a total of $155 million, Archbishop John Vlazny told reporters.
He said the Chapter 11 bankruptcy filing would allow the Church to pay all claims without selling off parish assets. A Chapter 11 bankruptcy filing frees a group from the threat of creditors’ lawsuits while it reorganizes its finances.
The archdiocese has paid $21 million from its own funds to settle claims in the last four years, the prelate said, but insurance companies have refused to cover some 60 current claims.
