By JIM BUTLER
The Diocese of Alexandria lists assets of $16.7 million and liabilities of $9.5 million in its bankruptcy petition filed October 31.
Seeking Chapter 11 reorganization, the diocese through its attorneys lists $7.8 million in unsecured claims.
Chapter 11 stays action against a debtor, allowing time for reorganization and court assessment of payment demands.
Bishop Robert N. Marshall Jr. in a letter to parishioners said the 93-page petition seeks a global settlement with those who seek remuneration as a result of alleged clergy sexual incidents.
More than half the 85 identified complaints, by the alleged victims or on their behalf, as of the filing stem from the 1970s or earlier.
A final number will not be known until the court, Chief Bankruptcy Judge John S. Hodges, U.S. Western District of Louisiana, presiding, sets a claims deadline.
It has been previously reported that diocesan officials thought it could pay up to $4 million to resolve the matter and remain solvent.
The diocese a year ago confirmed it and 40 other organizations were working to reach a global settlement before any filing, as a result avoiding extensive delays and legal fees.
(The diocese estimates legal fees of the current matter to be $1 million to $2 million.) A mediator hired by that consortium worked with six attorney groups to reach agreement to stay civil proceedings while negotiating proceeded.
In the interim staggering award numbers have occurred in several jurisdictions, most recently New Orleans, where $230 million is in play.
(An aside: Alexandria attorney Richard Arsenault is court-appointed reviewer of the New Orleans individual claim awards under a points system.) Status of the Alexandria mediation effort has not been disclosed.
Unsecured claims listed in the Diocesan filing include $7.1 million for priest retirement, health insurance and burial benefits and $626,000 guarantee of a loan to Holy Savior Menard Central High.
In addition to the primary petition the filing includes 21 motions, mostly relating to enrollment of counsel, agent for eventual distribution, financial management and the like.
Bradley L. Drell, of Alexandria’s Gold Weems, is counsel. Also enrolled is national firm Husch Blackwell LLP, three of its partners and a senior counsel.
The filings include a proposed interim order, a proposed final order and disclosure of compensation, none of which is viewable online without subscription to the court-approved information system.
The case number is 25-31257.