Twin Cities Archdiocese close on reorganization plan

An attorney for the bankrupt Archdiocese of St. Paul and Minneapolis said Thursday that the church has developed a broad outline of a reorganization plan.

Attorney Richard Anderson told a federal judge that the church hopes to bring the plan forward before the end of May. He indicated it would include financial contributions from the archdiocese, insurers and other parties, but he did not offer details.

The church could file a plan without the support of the unsecured creditors committee, which represents sex abuse victims, Anderson said.

Mike Finnegan, an attorney for sex abuse victims, criticized the archdiocese for not sharing the plan with victims.

"It's alarming abuse survivors have not seen any part of a plan of reorganization yet," Finnegan said. "And it's very, very concerning to us that the archdiocese would broadcast that they might be filing a plan without the survivors' consent."

Competing reorganization plans could be proposed.

The archdiocese filed for bankruptcy in January of last year. The church's total bill for its bankruptcy and related litigation has topped $5 million.

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