Tucson bishop may seek bankruptcy protection

Published: 2004-06-21

TUCSON, Ariz. (CNS) -- A Chapter 11 bankruptcy filing may be the only option available to the Tucson Diocese in the face of sexual abuse lawsuits seeking millions of dollars, Bishop Gerald F. Kicanas said in a letter to his people. It could mark the first time a U.S. Catholic diocese utilizes Chapter 11 of the U.S. Bankruptcy Code. The legislation is designed to let a corporation with unmanageable debt continue functioning while reorganizing under a court-approved plan to restore solvency by restructuring and eliminating the debt. In the letter, dated June 16 and read at parish Masses the weekend of June 19-20, Bishop Kicanas said he is currently engaged in "the proper consultation necessary to begin what now appears to be the only option for the diocese, pursuit of Chapter 11 bankruptcy protection under federal law." He wrote, "We are a mission diocese with few resources. Previous settlements have severely limited our ability to respond to the present demands."

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