The Diocese of Stockton, Calif., yesterday announced a plan that could result in its exit out of bankruptcy more than two years after legal costs stemming from dozens of child sexual-abuse lawsuits depleted its funds, the Stockton Record reported today. Bishop Stephen E. Blaire said that the diocese, which filed for bankruptcy in January 2014, negotiated with all the parties involved to reach a consensual plan, which includes:
- $15 million to survivors of sexual abuse and a trust for the benefit of survivors.
- Payment of at least 50 percent of what is owed to unsecured creditors.
- Restructuring of unsecured loans.
Funding from the plan will come from the Diocese of Stockton, settling insurance carriers and other entities associated with the diocese. The $15 million settlement agreed upon by the diocese, the plaintiffs' attorneys and insurance companies is to “provide for the healing of the survivors,” Blaire said. The diocese is responsible for $9.89 million of the total amount.
