Diocese of Tucson to emerge from bankruptcy

Diocese of Tucson to emerge from bankruptcy

.- The Diocese of Tucson will emerge from bankruptcy thanks to a reorganization plan that has the archdiocese, insurers and parishes pooling their funds to settle sex-abuse claims up to $22.2 million.

Creditors could begin receiving payments in two months, says a report by the Associated Press. Judge James Marlar approved the plan Monday.

The diocese first sought Chapter 11 bankruptcy protection last September due to the large number of claims.

The pool includes $14.8 million from insurers, $2 million from parishes and $5.58 million from the archdiocese. An additional $300,000 came from a real estate auction in May.

The AP reported that 25 claims from victims and five from parents have been approved, as were 20 compromise settlements for people who had valid claims but fell outside a statute of limitations. Twenty-seven claims were disallowed. Five settlements are pending, six claimants decided to go to litigation and 14 unresolved claims will be sent to a special arbitrator.

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