Archdiocese of Milwaukee Settles Bankruptcy

NOTE: Key Parts of the Proposed Settlement Between the Archdiocese and Abuse Survivors (FAQ)

Archbishop Jerome E. Listecki announced today that the Archdiocese of Milwaukee has reached a collective settlement with abuse survivors of clergy sexual abuse for $21 million, setting the stage to close the Chapter 11 proceeding filed on January 4, 2011.  The proposed settlement agreement will be outlined in an Amended Plan of Reorganization to be filed in U.S. Bankruptcy Court on August 24, and Judge Susan V. Kelley is expected to review the Plan at a hearing on November 9.

Archbishop Listecki said if the plan is approved, it officially ends the bankruptcy case and allows the archdiocese to return its full attention to the spiritual, charitable and educational mission of the Church.

“Today, we turn the page on a terrible part of our history and we embark on a new road lined with hope, forgiveness and love,” Archbishop Listecki said.

“This settlement represents for us in the Archdiocese of Milwaukee a new Pentecost, a day of rebirth that renews our focus on Word, Worship and Service,” Listecki said.  “We do so remembering those who have been harmed; keeping them in our prayers; supporting them through therapy and healing; promising never to forget the evil that has been done; and working diligently to ensure this never happens again.”

“This chapter will live on in our memories forever, but now we can turn the page from that chapter and focus on the future,” Archbishop Listecki said.  “We turn that page by rededicating ourselves to the spiritual, educational and charitable mission of the Church – igniting our enthusiasm in our parishes and schools; renewing our commitment to Jesus Christ and His Church; and energizing ourselves and others in our prayer and ministry.

“This has been a long process filled with prayer, patience and perseverance, but I am pleased to have reached the goal of providing compensation to those who have been harmed; creating a path toward healing; and allowing the Church to continue its mission,” Archbishop Listecki said.

The agreement was endorsed by both the Archdiocese of Milwaukee Finance Council and the College of Consultors, according to Archbishop Listecki.

The settlement came after three days of mediation and negotiations between the archdiocese, the Creditors’ Committee, and attorneys for abuse survivors July 15-17, in Milwaukee.