St. Cloud Diocese Files for Chapter 11 Reorganization

ST. CLOUD -- The Diocese of St. Cloud filed a voluntary petition Monday for relief under Chapter 11 in the Minnesota Bankruptcy Court.

This filing follows the announcement May 26 of the diocese and survivors of clergy sexual abuse reaching agreement on a framework for a resolution of all clergy sexual abuse claims against the diocese and area parishes.

In the Chapter 11 bankruptcy, this framework for resolution will provide for a $22.5 million trust to compensate survivors of clergy sexual abuse. The funds to be used to compensate survivors are made up of insurance and benefits coverage settlements, cash and property contributions from the diocese, and contributions from parishes.

The funds will be administered by an independent trustee appointed by the bankruptcy court, with input from a committee representing the interests of survivors.

The court will set a date by which all claims against the diocese must be filed. When the date is set, it will be announced publicly with information about how to file a claim.  The date by which claims must be filed and filing information also will be posted on a special reorganization webpage at www.stcdio.org/reorganization.