Panels to represent businesses, sex abuse plaintiffs in Portland case

Published: 2004-07-30

PORTLAND, Ore. (CNS) -- Federal bankruptcy authorities have so far been unable to form a committee representing businesses to whom the Archdiocese of Portland owes money. Sex abuse plaintiffs make up a different committee that will have a vote in approving the archdiocese's reorganization plan. Plenty of volunteers stepped forward for that group. Most bills owed to businesses are small. Key Bank of Oregon, by far the largest trade creditor with $22.3 million in loan guarantees, expressed no interest in serving on the committee, which takes legal resources and time. "The trade debt creditors think they are ultimately going to get paid under any plan, so they are not worried about their position," said Ilene Lashinsky, U.S. trustee for the Pacific Northwest. Lashinsky says that if the creditors see the need for a committee later to help represent them, it could be formed then.

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