Reports that the Roman Catholic Archdiocese of Boston may declare bankruptcy to shield itself from hundreds of clergy sex abuse lawsuits are "premature and speculative," a church spokeswoman said last night.
A day after the
Boston Globe
reported the archdiocese might take the unprecedented step, the church said it was still trying to reach a settlement with the estimated 450 alleged victims of clergy sex abuse who have filed lawsuits against it.
"No decision has been made on the issue of bankruptcy. We want to settle these cases in a fair and equitable manner while maintaining the good works and the mission of the church," the archdiocese spokeswoman said.
Filing for Chapter 11 bankruptcy protection in federal court would allow the archdiocese to continue to operate while it reorganises its finances. The move would also halt action in the civil lawsuits against the church. The archdiocese says it has almost $100 million in insurance coverage that could be used to pay some of their clients.
The abuse scandal exploded earlier this year after files released in the case of an accused paedophile priest showed that Boston Cardinal Bernard Law and other church leaders knew about the man's behavior but instead chose to shuttle him from parish to parish.
Cardinal Law has repeatedly apologised for his handling of alleged sexually abusive priests but has rejected parishioners' calls that he step down from his post.