May 1, 2006
NEWS RELEASE
FOR IMMEDIATE RELEASE
For More Information, Contact:
Bud Bunce (503) 233-8373
bbunce@archdpdx.org
Archbishop updates Catholics on the Chapter 11 Bankruptcy proceedings
Archbishop John G. Vlazny has sent a letter to Catholics in Western Oregon updating them on the various aspects of the Chapter 11 Bankruptcy proceedings. Archbishop’s letter, dated April 21 and distributed through parish churches Sunday, April 30, dealt with the areas of property litigation, tort claims, insurance litigation, the plan of reorganization and future budget cuts at the Pastoral Center.
The Archdiocese has appealed the Bankruptcy Court’s December property rulings. The committee of parishes, parishioners and schools has also appealed the rulings. The Archbishop reassured parishioners that the court has not ruled that any “specific assets are available to pay claims; only that certain real property is potentially available.” In another ruling the court suggested that no parish or school property would be considered available to pay claims until after all relevant issues have been decided and appeals finally resolved. Even while the appeals are pending, the Archdiocese is trying to reach an acceptable settlement with all parties on these issues.
The Archdiocese has requested the court to estimate the value of pending unresolved tort claims in order to allow the Archdiocese to move towards confirmation of its plan of reorganization. The court will determine how this estimation will be done in the next couple of months. The Archbishop reported that the Archdiocese’s plan of reorganization has been modified after reviewing objections to the original plan. At the same time, the Tort Claimants Committee has proposed a competing plan of reorganization to which the Archdiocese has objected.
Finally, Archbishop Vlazny announced that the Archdiocese is facing serious cash flow problems, and that, “We will need to cut approximately $1 million in services to parishes and schools from the Archdiocesan Pastoral Center for 2006 – 2007 fiscal year beginning on July 1, 2006.” He stated that he is meeting with the Presbyteral Council and others to hear their thoughts and priorities for services that the Pastoral Center should continue to provide.
Archbishop Vlazny closed the letter acknowledging the faith and support of the Catholic people in the Archdiocese: “I count on your prayers and support. Only your generosity will allow us to continue many of the ministries of the Church of Western Oregon.”
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(Copy of the Archbishop’s letter is available
in English and Spanish on our web page www.archdpdx.org/bankruptcy.
Click here
for English