The following comes from a Diocese of Stockton press release:
On January 10, 2017, 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. Key provisions of the Plan include:
- • $15 million through cash contributions and a promissory note to fund a trust for the exclusive benefit of survivors of clergy sexual abuse,
- • payment of at least 50% of what is owed to general unsecured creditors,
- • restructuring of secured loans,
- • funding for the Plan coming from the Roman Catholic Bishop of Stockton, settling insurance carriers and certain other entities associated with the Diocese of Stockton.
The approved consensual Plan will allow the Diocese to exit bankruptcy within the next few weeks. 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.
“We wish to thank all of the parties, including the court appointed mediator Judge Gregg W. Zive, Judge Klein, the sexual abuse survivors, the insurers, the creditors’ committee, and their respective counsel, our counsel, and the entire Catholic community, for helping bring this very difficult chapter in the history of the Diocese to an equitable resolution,” said Bishop Stephen Blaire.