Archdiocese of Milwaukee’s bankruptcy

Dear Brothers and Sisters in Christ,

As we begin this holy season of Lent, my hope is all of us can focus on our spiritual life and increase our individual attention to our prayer life. I have posted a short message for Lent on our archdiocesan website http://www.archmil.org/Bishops/Listecki/Video-Files.htm.

During this time, I also want to keep my promise of sharing with you information about progress in our bankruptcy case, so I am writing to give you an update about some recent developments.

You’ll remember that our goals in filing for reorganization were to continue our outreach to victims/survivors, as well as continue to work toward resolution for those who have been harmed. Today our attorneys filed two motions in U.S. Bankruptcy Court to do just that. These motions will protect the interests of victims/survivors of clergy sex abuse as we go through this challenging process.

In a bankruptcy, the court must approve any expenditure that falls outside normal operating expenses, so one of the motions asks the judge to allow the archdiocese to continue paying for psychological counseling and therapy for those who have requested it. The archdiocese has been providing therapy for victims/survivors since the 1990s and, in recent years, we have been paying just over $70,000 a year to provide this support. We want to continue this outreach to those who benefit from it as part of the ministry of the Church.

This motion also asks the judge for permission to continue making installment payments to victims/survivors as promised in settlement agreements that were reached through the independent mediation process we established in 2004. While final payments have been made to 170 individuals, $702,000 is still owed to 22 others. Of that total, $311,000 is owed this year. Those individuals rely and depend upon those monies and it would seem just that the payments continue without undue interruption.

The last part of this motion asks permission to finalize settlements in two cases that were initiated by individuals prior to the Chapter 11 filing. Any monetary settlements would need to be approved by the court, but it seems fair that those who began to finalize their resolution with the archdiocese be allowed to bring that to completion.

In working with victims/survivors, the archdiocese has pledged to maintain privacy for those involved. Though individuals are free to publicly identify themselves as victims/survivors, most choose not to disclose this information, sometimes even to their families. The second motion seeks to ensure this privacy so identities can remain confidential if they so desire. To do this, we are asking the court to establish special procedures for delivering official notices to victims/survivors who are involved in the bankruptcy proceedings. These procedures would keep the names of victims/survivors off the list of its creditors and deliver bankruptcy-related official notices to them through their attorneys or other intermediaries.

These motions reflect our desire to honor our existing commitments to those who have been harmed and prevent any additional hurt to victims/survivors and their families.

Please join me in praying for all victims/survivors, for a just resolution of this bankruptcy proceeding, and for brighter days ahead for our Church.

A blessed Lent!
Sincerely yours in Christ,
Most Reverend Jerome E. Listecki
Archbishop of Milwaukee