February 1, 2014 in Region

Helena’s Catholic diocese files for bankruptcy protection

Matt Volz Associated Press
 

HELENA – The Roman Catholic Diocese of Helena filed for bankruptcy protection Friday as part of a proposed $15 million settlement for hundreds of victims who say clergy members sexually abused them over decades while the church covered it up.

The Chapter 11 bankruptcy reorganization plan comes after confidential mediation sessions with the plaintiffs’ attorneys and insurers, resulting in a proposed deal to resolve the abuse claims, diocese officials said.

Bishop George Leo Thomas expressed “his profound sorrow” and apologized to the victims in a news conference.

“I know the pain is real, the pain is in the present tense, and in the name of the church, I want to say I’m sorry and we’re sorry as a church,” Thomas said.

The $15 million “will at least be a beginning point for people who are seeking resolution in their lives and in their hearts,” he added.

In addition to the money, the diocese must publicly apologize, publish the names of clergy members who have been credibly accused of abuse, offer to meet with abuse survivors, provide victim counseling, and reinforce its policies and procedures to prevent abuse, plaintiffs’ attorneys said.

The diocese already has set up abuse-prevention programs, including worker screenings, a claims-review board and a hotline to report abuse.

The settlement details are being worked out, but the U.S. Bankruptcy Court in Montana would be responsible for approving and supervising the disbursement of $15 million to compensate the 362 victims identified in the two lawsuits.

In addition, at least $2.5 million will be set aside for victims who come forward later, according to the diocese.

The church anticipates paying that $2.5 million, with the rest paid by insurers.

The victims and creditors will have the chance to vote on the proposed settlement, diocese officials said.

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