November 16, 2005

NEWS RELEASE
FOR IMMEDIATE RELEASE
For More Information, Contact:
Bud Bunce (503) 233-8373
bbunce@archdpdx.org

Archdiocese of Portland submits Plan of Reorganization to Bankruptcy Court

        On November 15, 2005 the Archdiocese of Portland submitted its Plan of Reorganization to the Bankruptcy Court for the District of Oregon. The Archdiocese filed a voluntary petition under Chapter 11 of the Bankruptcy Code on July 6, 2004. The Plan allows the Archdiocese to reorganize its financial affairs in such a manner that the Archdiocese may “fairly, justly and equitably compensate victims of sexual abuse by clergy and others associated with the Archdiocese while, allowing the Archdiocese to continue its ministry and mission and attempt to finally bring healing to victims and others affected by past acts of sexual abuse committee by clergy and others.”

        Archbishop John G. Vlazny said:

Our plan of reorganization is one that provides for fair and just compensation to victims who have been sexually abused, provides for payment of future claims, and meets the other financial obligations of the Archdiocese. As I have said before, with the help of insurance funds, loans that were not possible before bankruptcy, and whatever financial support might be forthcoming from friends of the Archdiocese in the form of gifts or loans, we intend to pay our debts and emerge from bankruptcy. We believe our plan is fair both to victims and to the 396,000 Catholics of western Oregon and the many, many people who benefit from the various ministries of the Archdiocese of Portland.

        Tom Stilley, bankruptcy attorney for the Archdiocese, noted the following advantages of the plan:

The plan will permit tort claims that have been settled, or that are settled between now and confirmation of the plan, to be paid in full promptly upon confirmation of the plan.

The plan provides for resolution of unsettled tort claims through a Claims Resolution Facility which will be under the jurisdiction of the United States District Court.  For those claims which cannot be settled, the claimants will have the opportunity to try their claims to a jury in the District Court.  The Bankruptcy Court will estimate the amount that will need to be made available in the Facility to pay unsettled tort claims.  The Archdiocese has filed a separate motion setting forth a method and procedure it believes the court should follow in making this estimation.  If the Court follows the Archdiocese's recommendation, approximately $42 million will be made available for payment of presently known tort claims.  Additional amounts will be made available to pay all other claims.

We believe this plan satisfies the requirements of the Bankruptcy Code in that it is feasible from an economic standpoint, and it is in the best interest of creditors, parishioners, and persons served by the Catholic Church in western Oregon.  It provides the best opportunity for the claimants to receive compensation for their claims without delay.

The plan confirmation process requires that the Bankruptcy Court first approve a disclosure statement which provides adequate information to allow creditors to make a decision whether to vote in favor of the plan.  Once the disclosure statement is approved, it will be mailed with copies of the plan and a ballot to all known creditors.  Once the ballots are received and tabulated, the Court will hold a hearing on confirmation of the plan.

Note: Available at www.archdpdx.org/bankruptcy/plan

Plan of Reorganization

Disclosure Statement

Motion to Estimate