Overview
- U.S. Bankruptcy Judge Michelle M. Harner reviewed rival settlement proposals on Monday and declined to approve either plan, instructing parties to continue negotiating in her courtroom over the summer.
- The archdiocese and survivors disagree sharply on available money with reported figures of roughly $169 million in two trusts, a church proposal totaling $246 million, and a creditors' demand of $441.3 million.
- A central legal fight is whether individual parishes and schools can be treated as part of the church for liability, a question that would expand the pool of assets available to pay survivors.
- Insurance companies and the federal bankruptcy trustee registered objections to key parts of both plans, with insurers contesting coverage and the trustee saying he has problems with each proposal.
- The court will circulate both plans to creditors for a vote and hold a confirmation hearing in September to decide which plan, if any, will be approved, leaving survivors awaiting a final payout and clarity on accountability.