2-13-14 milwaukee archdiocese-bankruptcy

MILWAUKEE (AP) — The Archdiocese of Milwaukee estimates that about 125 sexual abuse victims will be eligible for a financial settlement under its bankruptcy reorganization plan.  The archdiocese filed for bankruptcy in 2011, saying pending sexual abuse lawsuits could leave it with debts it couldn't pay. Its creditors include hundreds of people who were sexually abused by clergy.  The archdiocese said Wednesday that is proposing setting aside $4 million to compensate eligible sexual abuse victims.

People who have already received settlements through the archdiocese's mediation program would not be eligible, nor would people who were abused by someone other than a diocesan priest.  A spokesman for the archdiocese noted it had already paid $33 million in victim settlements before filing for bankruptcy in 2011.  A bankruptcy judge must approve the reorganization plan.