A running battle with insurers may prolong a resolution to the Archdiocese of Santa Fe’s clergy sex abuse bankruptcy case, the Santa Fe New Mexican reported. The chapter 11 bankruptcy, involving about 400 victims, has plodded on for nearly 3½ years. The archdiocese and four insurance companies are now ensnared in a legal confrontation of their own, one that has thrown a difficult twist into the high-profile case. At issue is how big a share of a proposed settlement with victims the insurance companies should pay. Insurers’ participation is expected to be a vital element in the effort to settle with the victims. The delay in reaching a settlement between the archdiocese and victims has significant financial implications: Bankruptcy court records show the archdiocese has spent $5.7 million on professional fees in the case, including payments for lawyers and financial advisers. It’s a sum that will rise if the proceedings drag on. Attorneys met on Friday with U.S. Bankruptcy Judge David Thuma for a status conference, with mediation scheduled to continue today and Tuesday.
