Tucson, Ariz., Jun 16, 2004 / 22:00 pm
The Diocese of Tucson is considering plans to file for bankruptcy protection as a way to resolve pending lawsuits alleging sexual abuse by clergy, reported the Arizona Daily Star.
Diocesan attorney Barry MacBan told a Tucson judge Monday that a federal Chapter 11 plan is already in process.
Bishop Gerald F. Kicanas did not confirm whether the diocese would seek bankruptcy protection. However, he did tell the Arizona Daily Star Tuesday that a Chapter 11 filing is "absolutely realistic."
Chapter 11 bankruptcy would allow the diocese to continue operating its 74 parishes and carry on with its ministry as usual. The court would monitor the diocese’s finances while the diocese tries to pay costs related to sexual abuse claims.