The Wall Street Journal reports that the Gallup (New Mexico) Diocese filed today (Monday, March 21, 2016) a mediated plan of reorganization in its bankruptcy proceeding. Here are some blurbs from the Wall Street Journal report:
The Roman Catholic Diocese of Gallup, N.M., unveiled today “a $22 million reorganization plan, the bulk of which will be used to compensate 57 clergy sexual-abuse victims.”
“The Diocese of Gallup, which serves about 60,000 parishioners in New Mexico, Arizona and several Native American reservations, filed for chapter 11 protection in late 2013. The filing halted more than a dozen lawsuits related to sexual-abuse allegations.”
“The bankruptcy plan . . . was largely drawn up in court-ordered mediation sessions after initial talks with the diocese’s insurance carriers and other participants broke down.“
“Non-monetary terms . . . are still being negotiated.”
Fees and expenses in the Gallup bankruptcy “will top $3 million.”
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