U.S. Bankruptcy Judge Susan V. Kelley confirmed the Archdiocese of Milwaukee’s reorganization plan, marking a milestone in the longest-running and most contentious of the 14 Catholic church bankruptcies filed since 2004, the Milwaukee Journal Sentinel reported today. The bankruptcy plan will pay about $21 million to survivors and set up a $500,000 fund for continued therapy. Another $8 million will pay legal fees and costs of other creditors and the archdiocese's attorneys, on top of about $12 million already paid out to those lawyers. On the other side of the deal, the archdiocese, its parishes, schools and other institutions are released from liability for future lawsuits that were, or could have been, part of the chapter 11 case. The bulk of the money comes from various insurers who bought back their policies for about $11 million in return for being released from liability for any sex abuse claims. A trust fund established to care for Catholic cemeteries is contributing another $16 million. The balance will come from various other archdiocesan- and parish-funded resources, including a continuing education fund for priests.
