Portland Archdiocese files for bankruptcy

Published: 2004-07-06

PORTLAND, Ore. (CNS) -- Facing financial pressure from impending trials on sex abuse claims, the Archdiocese of Portland July 6 filed for Chapter 11 bankruptcy. It is the first Catholic diocese in the United States, and perhaps the world, to seek the legal protection. The move, described as a last resort, means that multimillion-dollar suits now pending against the archdiocese will be settled in federal bankruptcy court along with possible future claims. Parish and school activities and ministries will continue, officials said. "This action offers the best possibility for the archdiocese to resolve fairly all pending claims, to manage a difficult financial situation and to preserve the ability of the archdiocese to fulfill its mission," said Portland Archbishop John G. Vlazny at a press conference, where he was joined by archdiocesan officials and advisers. "It will also allow us to continue our good works without fear of an impending large verdict." Two abuse trials were set to begin just hours after the announcement, but were halted. The plaintiffs were seeking a total of $155 million.

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