DULUTH, MN (CBS-3) – An agreement has been reached between the Diocese of Duluth and the survivors of clergy sexual abuse in the Diocese bankruptcy proceedings.
The Diocese of Duluth filed for Chapter 11 bankruptcy on December 7th, 2015.
According to the Duluth Diocese, the bankruptcy proceeding includes the filing of a Disclosure Statement and a Joint Plan of Reorganization, which will be filed in the near future.
The Diocese says the Reorganization Plan will distribute about $40 million, with more than $39 million funding a Distribution Trust for the benefit of the survivors.
Diocese officials say the statement and reorganization plan will be subject to approval by the U.S. Bankruptcy Court for the District of Minnesota, and will also require a Disclosure Statement be approved before the balloting for the plan.
Officials say the ballots will be sent out to 125 survivors for approval.
Once the survivors vote on the reorganization plan, the Bankruptcy Court must once again approve the Plan the survivors approve.
After that is complete, officials say the claims are evaluated by a claims reviewer to determine award amounts.
