St. Cloud diocese bankruptcy plan approved to settle abuse claims

A bankruptcy court has approved a reorganization plan for the Catholic Diocese of St. Cloud to settle legal claims of clergy abuse survivors.

Two years ago, the St. Cloud diocese announced that it planned to file for bankruptcy after receiving 74 claims of sexual abuse of minors.

Those claims were filed during a three-year window that lifted the statute of limitations on allegations of clergy abuse in Minnesota.

Last May, the diocese announced the two sides had reached an agreement that included a $22.5 million trust to compensate abuse survivors. The diocese also agreed to file for Chapter 11 bankruptcy.

Under the plan the court approved this week, insurance will pay the majority of the settlement, along with property sales and contributions from parishes.

In a statement, Bishop Donald Kettler apologized to abuse survivors, and said the church failed them.

Kettler said he hopes the plan helps them move further along the path of healing and peace.