newsminer.com

A petition for Chapter 11 reorganization was filed Saturday by Donald Kettler, Catholic bishop of Northern Alaska, in the U.S. Bankruptcy Court for the District of Alaska.

A hearing on six motions accompanying the petition requesting that the Catholic Diocese of Fairbanks be allowed to continue to operate its routine business while the case is pending will be held at 3 p.m. today in the bankruptcy court in Anchorage.

Kettler publicly announced his intentions to file for reorganization under federal bankruptcy laws three weeks ago, citing the diocese’s failure to settle with more than 140 people who made claims of sexual abuse in state courts, mounting legal costs and a settlement impasse with an insurance company.

A press release issued Monday by the diocese stated, “It is through the Reorganization Case that the Diocese seeks to finally and comprehensively address the issues resulting from the abuse crisis that has caused great harm to the victims, has plunged CBNA into an even more dire financial condition, and has interfered with the Catholic Church’s traditional ministries in the communities within the Diocese.”

The majority of the alleged abuse occurred from the 1950s to the 1980s in rural Alaska.

The mission diocese administers 46 parishes throughout the northern half of the state. Only eight are financially independent.

The diocese is represented in the Chapter 11 proceeding by the Quarles & Brady law firm based in Arizona, with Alaska counsel Michael Mills of Anchorage.

The Chapter 11 filing effectively stops all collection of debts and all lawsuits against the diocese as a reorganization plan is being made.