Orange Diocese makes progress in retiring debt after sex-abuse cases

Published: 2005-10-07

ORANGE, Calif. (CNS) -- Less than a year after the Diocese of Orange settled clergy sex-abuse lawsuits with 90 plaintiffs for $100 million, the diocese has repaid 70 percent of its half of the debt without affecting the funds of Catholic schools and parishes. The other half of the settlement total was paid out by eight liability insurers. The diocese retired $35 million in debt this summer with funds drawn from the diocesan general fund and reductions in the diocesan investment portfolio. Diocesan officials said the remaining $15 million is expected to be repaid by next June. "Instead of 20 years of crippling and demoralizing debt, our lay advisers have mapped out a financial plan that is as progressive as our diocese," said Bishop Tod D. Brown of Orange. The bishop was referring to the 10-member Task Force on Debt Reduction, made up largely of lay business executives, working as volunteers.

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