Spokane Diocese moves toward bankruptcy end with $5 million payment

Published: 2007-09-28

SPOKANE, Wash. (CNS) -- In what Bishop William S. Skylstad called "just one small step toward healing for the victims," the Diocese of Spokane was to wire $5 million Oct. 1 to a trust account set up to pay the claims of those sexually abused by clergy in the diocese. The payment to the Plan Trustee Trust Account, as stipulated by the bankruptcy reorganization plan approved in April, brings the diocese "one step closer to fulfilling the requirements of the plan and concluding the Chapter 11 reorganization," Bishop Skylstad said in a Sept. 27 statement. A payment of $1 million remains and must be made by Oct. 1, 2009, he said. Bishop Skylstad said the diocese "has incurred approximately $3.4 million in debt to date, which includes payment for trade creditors by January 2008." He said he would "continue fundraising to reduce the level of debt, so that ministry support in eastern Washington can continue." Under the terms of the settlement plan, the 176 childhood victims of abuse by priests or other church personnel in the diocese will receive compensation ranging from $15,000 to $1.5 million, depending on several factors, including the severity of the abuse and whether or not the statute of limitations had run out before the claim was made.

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