Updated: Statement Regarding Objection to Crosier Plan

From Thomas J. Abood, Chair, Reorganization Task Force of the Archdiocese of Saint Paul and Minneapolis

The Archdiocese is committed to maximizing its resources available to compensate victims and to reach a prompt consensual result in its bankruptcy case through the mediation ordered by Judge Kressel. The availability and value of its insurance is at the heart of these resources. The Archdiocese filed its objection in the related Crosier matter to ensure the preservation of insurance rights for the benefit of the victim creditors in its case. The Archdiocese fully expects that its filing, as well as the similar filing by the Crosiers in the Archdiocese case, will be resolved in a way that does not delay confirmation of a plan in either case.

The mechanical and procedural nature of this objection is well known to counsel to the victims. Anyone who has studied other diocesan bankruptcies should know that a failure to file an objection of this sort can sadly result in the loss to creditors of the benefits of diocesan insurance coverage. It doesn’t help the Archdiocese; it only helps its creditors. Rather than being a self-serving hardball legal tactic, yesterday’s filing is completely consistent with the Archdiocese’s sincere commitment to putting survivors first. Enough is indeed enough.

The Archdiocese will continue to focus its efforts on the active mediation and reaching a consensual plan that benefits victims as soon as possible.