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Archdiocese of Agana Expected to File for Chapter 11 on Wednesday

Submitted by jhartgen@abi.org on

The Archdiocese of Agana (Guam) is expected to file for chapter 11 reorganization on Wednesday, Jan. 16, the Pacific Daily News reported. The archdiocese has been listed as a defendant in about 200 sex abuse lawsuits in local and federal court. Last year it announced it would file chapter 11 bankruptcy. That allows the archdiocese to reorganize and pay clergy sex abuse claims using existing assets and insurance money, while still maintaining the operations of its parishes, schools and soup kitchen. The plaintiffs on Guam demand at least $1 billion in combined damages, not including cases that call for damages to be determined at trial. The archdiocese's assets are nowhere near that amount even if it succeeds in selling 41 assets that include the former Accion Hotel in Yona and the Chancery. Those assets for sale do not include Catholic schools and parishes. Officials have said that the bankruptcy plan will combine mediation, independent counseling for victims, and not challenging the validity of each of the sex abuse claims.