The following is a September 20 press release from the Diocese of Stockton:
Today, the Roman Catholic Bishop of Stockton filed with the bankruptcy court a proposed consensual plan of reorganization. The proposed plan will provide $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 continued commitment to providing 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 proposed 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 will come from the Roman Catholic Bishop of Stockton, settling insurance carriers and certain other entities associated with the Diocese of Stockton.
The consensual plan, if approved by the bankruptcy court, is expected to allow the Diocese to exit bankruptcy by the end of the year. The Diocese’s plan also will allow the Diocese to carry on its essential ministries and services so the Diocese can continue to meet the needs of the parishioners, and others who rely on the Diocese’s ministry, education, and charitable outreach.
To view the plan, or to see any of the documents filed in this case, visit www.kccllc.net/stocktondiocese