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Milwaukee Catholic Archdiocese, Creditors Agree on Case Delay

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MILWAUKEE, Wis. (WTAQ) - The Milwaukee Catholic Archdiocese and a group that represents its unsecured creditors have agreed to delay court arguments over payments to victims of priest sex abuse.

The church wants a bankruptcy judge to approve payments of $702,000 to 22 victims who reached settlements through private mediation. But the creditors opposed paying the settlements right away, saying more mediation should take place.

The creditors’ committee said it gives the church the potential to scare victims into settling now, while money for the payments is available. The creditors also questioned the church’s creation of 4 trusts a few months before the archdiocese filed for bankruptcy.

Also, the creditors are challenging a church transfer of $55 million into a cemetery trust fund it started in 2008.

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