Archdiocese Files Plan of Reorganization in Chapter 11; Establishes Lifetime Therapy Fund

MILWAUKEE – The Archdiocese of Milwaukee will file its Plan of Reorganization in its Chapter 11 proceeding February 12, establishing a Lifetime Therapy Fund for abuse survivors; compensating abuse survivors with eligible claims; and providing a feasible operation plan to allow the archdiocese to emerge from bankruptcy once the plan is confirmed by the bankruptcy judge. 

“This is a major step toward ending the bankruptcy and returning our focus to the primary mission of the Church; namely, proclaiming the Gospel, worshipping more fully, and serving our sisters and brothers in need,” Archbishop Jerome E. Listecki said.  “This Plan makes sure abuse survivors continue receiving the assistance they need, while allowing the archdiocese to return its focus to its ministry.

The Plan sets aside approximately $4 million from the non-restricted assets of the estate of the archdiocese to distribute to abuse survivors and to pursue litigation for the recovery of additional funds from the archdiocese’s insurance companies.  To provide the money, the archdiocese will use its remaining property as collateral for a loan.

“No amount of money could ever be enough to restore what was taken from those who suffered abuse.  People were robbed of a part of their life and nothing we do today can change that.  I understand that; but what I can do is to make sure abuse survivors receive the therapy assistance they need.”

Besides providing lifetime therapy for anyone abused by a diocesan priest or someone abused by an individual at a diocesan parish or school, the archdiocese also commits to working with those abused by religious order priests, brothers or sisters to connect them with the appropriate religious order for assistance.

The Plan also outlines a feasible operational structure for the archdiocese to allow it to continue its ministry in the community, providing the worship, outreach, education, service and charity that make up the work of the Catholic Church in southeastern Wisconsin.

The Plan of Reorganization does three things.  First and foremost, the Plan provides abuse survivors the assurance of lifetime therapy.  Second, the Plan takes whatever unrestricted archdiocesan assets that remain and gives them to abuse survivors of diocesan priests.  Third, it pays the cost of the bankruptcy, as required by the court; mainly legal and accounting fees.

Read the summary fact sheet.

Visit the Reorganization Plan site.