October 1, 2004

NEWS RELEASE
Embargoed until 6:00 p.m. October 2, 2004
For More Information, Contact:
Bud Bunce (503) 233-8373
bbunce@archdpdx.org

Archbishop Vlazny updates parishioners on bankruptcy proceedings

        Archbishop John G. Vlazny has sent a letter to Catholic parishioners in Western Oregon updating them on the ongoing bankruptcy proceedings. The letter will be distributed through the parishes in the Archdiocese at Sunday Masses this weekend. Using a question and answer format, the Archbishop wrote that the Archdiocese has “returned to ‘business as usual’ to the extent possible in bankruptcy.” He assured Catholics that “the sacramental, pastoral and social ministry that is central to the mission of the Church has continued.”

        Archbishop explained that the Archdiocese has complied with providing financial information to the U.S. Trustee and to the Tort Claimants’ committee. He noted, “like all debtors in bankruptcy,” the Archdiocese was required to file detailed statements of its financial assets and liabilities, and “all this information is now a matter of public record.” He noted there are still “some issues concerning major construction projects of parishes and schools” to be considered.

        Two questions must be answered in any bankruptcy proceeding: how much does the debtor owe its creditors, and what are the assets available to pay creditors.  Archbishop Vlazny stated “Our primary goal is to compensate fairly all those who have legitimate claims against the Archdiocese.” He also assured parishioners, “We will defend our position that parish property belongs to the parishes and that this property and other funds held in charitable trust are not available to creditors.” The Archdiocese believes that insurance companies owe the Archdiocese compensation on unpaid claims. The Archdiocese is now in litigation to recover these funds.

        Archbishop Vlazny thanked parishioners for their continued financial support of the ministries funded by the Annual Catholic Appeal in the Archdiocese, and for financial support to their local parish for ongoing ministry. He concluded “I do know that if we place our trust in the Lord, all will be well.

                                                                                                     ###

A copy of Archbishop Vlazny’s letter attached in pdf format: Click here

A copy of Archbishop Vlazny's letter in Spanish attached in pfd format: Click here
 

Return to Current News Releases                                                           Return to October 2004 News Releases