Diocese Files Ch. 11 To Free Up $15M For Sex Abuse Claims

Law360, New York (January 31, 2014, 4:45 PM EST) -- Following extended negotiations with its insurance carriers, the Roman Catholic Diocese of Helena, Mont., planned to file for Chapter 11 bankruptcy protection in Montana bankruptcy court Friday in order to free up $15 million to settle with victims of its members’ alleged sexual abuse.

The bankruptcy proceedings are the culmination of confidential mediated negotiations with over 300 identified victims of sexual abuse within the diocese and the diocese’s liability insurers, the church said in a statement Friday.

The general parameters of proposed settlements with the victims...
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