LA archdiocese puts up six schools as loan collateral
LA archdiocese puts up six schools as loan collateral
LOS ANGELES (AP) — The Roman Catholic Archdiocese of Los Angeles is using its school properties to help pay part of a record $660 million to alleged victims of clergy sex abuse.
Spokesman Tod Tamberg said the diocese has put up six high schools as collateral on a $50 million loan to go toward the settlement.
He said five of the schools are in no danger of closing because of the action; a sixth already was scheduled to close in June.
In July 2007, a judge approved a $660 million settlement between the Los Angeles Archdiocese and more than 500 alleged victims of clergy abuse. It’s the largest payout yet in a nationwide sex abuse scandal that has cost the church more than $2 billion and forced six dioceses to declare bankruptcy.
Los Angeles Cardinal Roger Mahony has said the settlement would not affect core ministry, but the church would have to sell buildings, use some of its invested funds and borrow money.
The archdiocese will pay $250 million, insurance carriers will pay a combined $227 million and several religious orders will chip in $60 million. The remaining $123 million will come from litigation with religious orders that chose not to participate in the deal, with the archdiocese guaranteeing resolution of those 80 to 100 cases within five years.
