BOSTON (CNS): Boston archdiocese in the United States is considering filing for bankruptcy in the face of about 450 lawsuits for alleged sexual abuse of minors by its priests.
The Boston archdiocesan finance council voted on December 4 to allow Cardinal Bernard F. Law to pursue re-organising the archdiocese under Chapter 11 of the Federal Bankruptcy Code.
No US diocese has ever made a Chapter 11 filing, in which a court determines what a corporation must do to satisfy creditors equitably and, if possible, regain solvency.
“No final determination to file Chapter 11 has been made at this time,” said archdiocesan spokeswoman Donna M. Morrissey.
She said that if such a decision were made “other approvals”, including a go-ahead from the Vatican, would also be needed.
Ms Morrissey said the cardinal “is seeking to establish a global settlement with all abuse victims … as an alternative to resolving each case by separate litigation or negotiation”.
Meanwhile, Cardinal Law made an unannounced visit to Rome for discussions with Vatican officials.
“The cardinal has come to inform the Holy See about certain aspects of the situation in his diocese of Boston,” Vatican spokesman Joaquin Navarro-Valls said in a statement on December 9.
