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  Diocese Bankruptcy Closer to Resolution

By Sandy Rathbun
KVOA [Tucson AZ]
May 19, 2005

There was a hearing Thursday morning in Federal Bankruptcy Court over how to settle sexual abuse claims against the Diocese of Tucson.

All major parties walked out of the courtroom predicting Tucson's Diocese could be the first in the country to emerge from Chapter 11 bankruptcy.

Lynne Cadigan, an attorney representing victims, says, "What happened today is all the major parties have reached an agreement."

Dioceses in Tucson, Portland and Spokane all filed for bankruptcy court protection after they were sued by people claiming sexual abuse by priests.

Now, it appears Tucson's church, victims and creditors could agree to a payment plan and a judge could approve it by July 14th.

Bishop Gerald Kicanas, of the Diocese of Tucson, says, "The substantive issues have come to some resolutionm and all of the parties involved on the primary issues seem to have significant agreement."

Clearly, work remains to be done. Some objections still need to be resolved, and a majority of alleged victims and other creditors must vote to approve the plan, but the parties seem optimistic.

Kicanas says, "We've been blessed to see that people are trying very hard to try to heal those who have been harmed and to allow the Diocese to move forward."

There's no question that not all alleged victims are happy. Still, Cadigan believes most won't object to the settlement.

She says, "The real reason why there are so few objections to this bankruptcy plan is that to fight anything costs hundreds of thousands of dollars that really belongs to the victims."

The plan would pay sexual abuse claimants who meet strict legal criteria between $100,000 and $600,000. Others who don't meet the criteria could collect $15,000.

 
 

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