Fairbanks Catholic diocese files petition for Chapter 11

Posted: Wednesday, March 05, 2008

FAIRBANKS - The Catholic Diocese of Fairbanks has filed a petition for Chapter 11 reorganization.

The paperwork was filed Saturday by Bishop Donald Kettler in U.S. Bankruptcy Court.

Kettler three weeks ago announced his intentions to file for reorganization, citing the diocese's failure to settle with more than 140 people who made claims of sexual abuse.

He also noted mounting legal costs and a settlement impasse with an insurance company.

A hearing on six motions accompanying the petition is scheduled for Tuesday in Anchorage.

The diocese is requesting that it be allowed to continue to operate routine business while the case is pending.

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