Bankrupt US diocese
Moderators: Dom Perignon, Casimir
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Vox Americana
- Posts: 67
- Joined: Sat Jul 03, 2004 2:35 pm
- Location: Over the pond
Chapter 11
Sure, you may!
First, read what Most Reverend John G. Vlazny, Archbishop of Portland, has to say (Archbishop's letter)
Then try to understand US bankruptcy law a little (not easy). There are many chapters before you get to Chapter 11, and even some after. Chapter 11 bankruptcy, or "business reorganization," is the possibly the most complex chapter. If you're a large corporation facing looming financial catastrophe, you'd file under this chapter. You propose a payment plan, and your creditors have an opportunity to vote on your plan. If enough creditors vote in favor, it is usually approved. An approved plan essentially rewrites many of the contracts the debtor has with the creditors and the court then sends everyone back out on the street to live under the new arrangements.
What isn't clear in Portland in Oregon's case is how much it actually has in assets. But equally it isn't clear what it's debts are - the Devereaux case can't be settled because of the Chapter 11 filing. I think what Archbishop John Vlazny is trying to do is to be fair to all the claimants, not just those who get in first. And he says that the parishes own their own assets, not the diocese, so if parishes are solvent, then they can still pay their musicians... But then the Ninth Circuit judges may take a different view. Who knows? I think this will not be decided soon, or lightly, and we'll probably hear reference to the First Amendment soon too (giving the right to free exercise of religion).
'Uncharted waters' says Vlazny. Yes indeed. Let's trust that Christ is there to calm the storm.
First, read what Most Reverend John G. Vlazny, Archbishop of Portland, has to say (Archbishop's letter)
Then try to understand US bankruptcy law a little (not easy). There are many chapters before you get to Chapter 11, and even some after. Chapter 11 bankruptcy, or "business reorganization," is the possibly the most complex chapter. If you're a large corporation facing looming financial catastrophe, you'd file under this chapter. You propose a payment plan, and your creditors have an opportunity to vote on your plan. If enough creditors vote in favor, it is usually approved. An approved plan essentially rewrites many of the contracts the debtor has with the creditors and the court then sends everyone back out on the street to live under the new arrangements.
What isn't clear in Portland in Oregon's case is how much it actually has in assets. But equally it isn't clear what it's debts are - the Devereaux case can't be settled because of the Chapter 11 filing. I think what Archbishop John Vlazny is trying to do is to be fair to all the claimants, not just those who get in first. And he says that the parishes own their own assets, not the diocese, so if parishes are solvent, then they can still pay their musicians... But then the Ninth Circuit judges may take a different view. Who knows? I think this will not be decided soon, or lightly, and we'll probably hear reference to the First Amendment soon too (giving the right to free exercise of religion).
'Uncharted waters' says Vlazny. Yes indeed. Let's trust that Christ is there to calm the storm.
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presbyter
- Posts: 1651
- Joined: Sun Dec 21, 2003 8:21 pm
- Parish / Diocese: youknowalready
- Location: elsewhere
hmmm
hmmmm - well thanks musicus for giving me the credit for this thread - I got enough to worry about with a bankrupt parish I'm taking over in ten days time. Now if St Paul can ask for a collection so can I - can anybody send me a quarter of a million UK pounds sterling - or even US dollars would do!!
Re: hmmm
presbyter wrote:hmmmm - well thanks musicus for giving me the credit for this thread
LOL!
I should explain that I created this "new" thread by splitting the first two posts off from an existing one. This was suggested by another forum member.
Musicus