Less than six months after the Diocese of St. Cloud, Minn., filed its chapter 11 bankruptcy petition, a bankruptcy court has approved a plan for reorganization jointly submitted by the diocese and the creditors’ committee of clergy abuse survivors, Catholic News Service reported. This reorganization plan, approved on Dec. 3, “represents the culmination of several years of respectful negotiations among all the parties involved,” St. Cloud Bishop Donald J. Kettler said in a statement. The plan provides for a $22.5 million trust to compensate survivors of clergy sexual abuse. The funds will be made up of insurance coverage settlements, $14 million; property sales, including the St. Cloud Children’s Home, $5.25 million; and contributions from parishes and a line of credit, $3.25 million. The plan also includes non-monetary protocols for the protection of children. The Diocese of St. Cloud filed a voluntary petition June 15 for relief under chapter 11 of the bankruptcy code after the diocese and abuse survivors reached agreement in May on a framework for a resolution of all clergy sexual abuse claims against the diocese and area parishes.
