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Milwaukee Archdiocese Unveils Bankruptcy Reorganization Plan

The Milwaukee Archdiocese has proposed setting aside $4 million to compensate victims of clergy sexual abuse in its bankruptcy reorganization plan.

The Archdiocese filed for bankruptcy in 2011, saying pending sexual abuse lawsuits could leave it with debts it's unable to pay.  It's creditors include hundreds of people who were sexually abused by clergy.

In a statement Wednesday, the Archdiocese says the bankruptcy plan will include $4 million for sexual abuse victims.  It also proposes borrowing $2 million from a controversial cemetery trust fund.

The fund was created by former Milwaukee Archbishop Timothy Dolan, who's now Cardinal of New York. 

Victims say the fund was used hide money.  An attorney for the trust fund says the $2 million loan would be guaranteed with Archdiocese property and repaid with interest.

Marti was a reporter with WUWM from 1999 to 2021.