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U.S. News
Facing Abuse Claims, Helena Diocese Files for Bankruptcy
Move Part of Proposed Settlement for Victims Who Say Clergy Members Sexually Abused Them
Updated Jan. 31, 2014 4:23 p.m. ET
The Roman Catholic Diocese of Helena filed
for Chapter 11 bankruptcy protection Friday afternoon in an effort to
resolve more than 350 sexual-abuse claims.
The
diocese listed assets between $1 million and $10 million and
liabilities between $10 million and $50 million in its bankruptcy
petition, filed with the U.S. Bankruptcy Court in Butte, Mont.
The
Chapter 11 filing follows a mediation process that resulted in a
settlement with insurers and the individuals who have brought sexual
abuse claims against the diocese.
"Once
the reorganization proceedings conclude, we will be able to plan
confidently for future ministry for the people of the Church of the
Diocese of Helena,"
Helena Bishop George Leo Thomas
said Friday in a statement.
Should
a bankruptcy judge approve the settlement, the diocese would pay $15
million to currently identified holders of sexual-abuse claims with
additional funding set aside for others who may come forward with abuse
claims in the future.
The majority of
the proposed settlement would be funded by the diocese's insurers,
though the diocese estimates it would pay at least $2.5 million to fund
claims and legal costs.
Most of the 362
claims that have been brought against the diocese allegedly took place
between 30 and 60 years ago, according to the news release.
"On
behalf of the entire Diocese of Helena, I express my profound sorrow
and sincere apologies to anyone who was abused by a priest, a sister, or
a lay Church worker," Bishop Thomas said. "No child should experience
harm from anyone who serves in the Church."
Ten
other U.S. dioceses have turned to bankruptcy protection since 2004 to
deal with the financial difficulties of sexual-abuse litigation; most
recently, Stockton, Calif., and Gallup, N.M., have filed bankruptcy
petitions.
Through 2012, the Catholic
Church in the U.S. paid an estimated $2.2 billion to cover settlements,
therapy for victims, support for offenders, attorney fees and other
costs, according to a report by the U.S. Conference of Catholic Bishops.
Write to Tom Corrigan at tom.corrigan@wsj.com
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