On February 14, the Diocese of Stockton Plan for Reorganization took effect. All settlement payments have been deposited in the trust set up for the benefit of survivors of sexual abuse. The Trust will now begin the process of administering and paying the abuse claims pursuant to the provisions of the Plan.
As previously announced, the U.S. Bankruptcy Court for the Eastern District of California, Judge Christopher M. Klein, Presiding, approved the Roman Catholic Bishop of Stockton’s consensual Plan of Reorganization. The Plan received nearly unanimous approval in voting by the sexual abuse survivors and other creditors. The Plan provides $15 million to survivors of sexual abuse as well as non-monetary commitments which are important aspects of any healing process. The Plan demonstrates the Diocese of Stockton’s commitment to provide for survivors of sexual abuse in a fair, just and equitable manner from its available resources.
The Roman Catholic Bishop of Stockton filed bankruptcy on January 15, 2014. After months of negotiations and with the assistance of a court-appointed mediator, the Diocese’s Plan reflects the resolution of many issues with the creditors committee, insurance carriers and other parties.
Under the Plan, the Diocese with limited financial assets will be able to continue its essential ministries and services to meet the needs of the parishioners and others who rely on the Diocese’s ministry, education, and charitable outreach.
To view the Plan and the Notice of Effective Date, or to see any of the documents filed in this case, visit www.kccllc.net/stocktondiocese
From Diocese of Stockton press release.