By JIM BUTLER
The Diocese of Alexandria proposes to significantly alter its bankruptcy reorganization plan.
Awaiting court hearing, the outline includes revising the classes of allowable claims as well as reducing the amount in a trust fund to pay some of them, including alleged sexual abuse victims.
Facing a growing number of sexual abuse claims, the Diocese filed Chapter 11 last October.
It submitted a reorganization plan in June that included a trust fund in the range of $5 million for substantiated current or future claims relative to abuse.
The current Chapter 11 filing proposes a fund settlement payment contribution of $500,000, increased as necessary “to have such payment not less than liquidation value.”
Should the court find the amount required exceeds $1.5 million the Diocese reserves the option of withdrawing its plan.
The initial plan had general unsecured creditor claims and putative abuse claims in separate classes. They are now joined in Class 4 of four groupings.
Settlement of any such claims would be on a prorated share of the settlement trust payment, initially set $500,000.
The trust fund assets would consist of the settlement payment and any assigned insurance interest payments.
The other three claims classes – Southern Heritage Bank, Sabine State Bank, General Convenience, all secured – remain the same.
The voting deadline on the diocese’s plan, whatever form it may be, is currently November 10, with a confirmation hearing scheduled November 24.
In the face of abuse allegations the Diocese in 2018 undertook study dating to its creation in the 19th Century and developed a list of credibly accused clergy as well as undertaking extensive preventative steps going forward.
According to the Diocese, 158 claims were subsequently filed through the bankruptcy filing date. At least eight are believed duplicate. All are claims, not proof of claim.
More than 80% of the alleged actions occurred in the 1960s, 70s and 80s; five incidents are alleged since 2000.
According to the Chapter 11 paperwork, about half the total pertain to clergy employed or allegedly controlled at the time by the Diocese. About 50 involve parishes shifted from Alexandria to Shreveport in 1986.
And about 30 involve an alleged abuser neither employed or controlled by, but ordained in, the diocese.
He subsequently spent 30+ years as principal of a school of the Archdiocese of Chicago.
Alexandria Bishop Robert W. Marshall on Tuesday was appointed interim Apostolic Administrator of the Shreveport diocese.
He will administer its daily affairs while retaining Alexandria responsibilities until a successor to Robert W. Malone, who retired, is chosen.