Bankruptcy judge approves $37 million settlement in Davenport Diocese

Published: 2008-05-02

DAVENPORT, Iowa (CNS) -- Following a nearly four-hour hearing April 30, a bankruptcy court judge approved a plan that will allow the Davenport Diocese to emerge from bankruptcy, which it entered 18 months ago. The plan, which all but one of 165 creditors voted to accept, calls for a $37 million settlement and nonmonetary measures to compensate creditors, most of whom are survivors of clergy sexual abuse. The distribution of funds from the settlement will begin sometime this summer. The diocese will hand over the money and the deed to its headquarters, the St. Vincent Center, at the time of the reorganization plan's effective date, expected to be around the end of May. Praising everyone involved in the process, Judge Lee Jackwig suggested the collaborative effort could serve as a model for other bankruptcy cases. After her ruling, attorneys, a sex abuse survivor, diocesan officials and others smiled broadly, shook hands and congratulated one another. Davenport Bishop Martin J. Amos said in a statement: "This is not an issue to put behind us. This isn't a problem to 'get over.' The church must always keep the protection of children in the forefront of our mission of service to others."

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