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Settlement Proposed in Gallup Diocese Bankruptcy Case

Submitted by jhartgen@abi.org on

Attorneys for a New Mexico diocese have submitted a proposed settlement for a bankruptcy case that has spanned more than two years, the Associated Press reported yesterday. Attorneys for the Diocese of Gallup filed a reorganization plan yesterday that would use cash contributions of $21 million from nearly a dozen sources to settle claims filed by 57 alleged victims of clerical sexual abuse. Bankruptcy Judge David Thuma will consider the proposal at a hearing next month. The plan must also be approved by the claimants. An attorney for the claimants says some terms are still being negotiated, including policies to protect children. The diocese filed for chapter 11 protection in November 2013. Read more

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