11/19/2004

By JOHN K. WILEY  / Associated Press

Spokane Bishop William Skylstad, newly elected president of the U.S. Conference of Catholic Bishops, said Friday he doubts the group will take a position on diocesan bankruptcy filings.

Skylstad held a news conference after returning from Washington, D.C., where he was elected earlier this year to a three-year term as head of America's Catholic bishops.

He announced last week that the Spokane diocese plans to reorganize its finances under Chapter 11 of the federal bankruptcy code, following the lead of dioceses in Portland, Ore., and Tucson, Ariz.

It is unlikely the national bishops' organization will take a position on the issue, Skylstad said.

"I don't think so, to be honest with you. I think that each diocese will make its own decision," Skylstad said. "The bishops' conference itself is not particularly a legislative body. Normally, the bishops' conference is a group of bishops coming together to address pastoral needs and pastoral responsibilities to the church here in the U.S."

The Spokane diocese plans to file for bankruptcy protection on Dec. 6, Skylstad and Shaun Cross, the diocese's bankruptcy lawyer, said.

Skylstad said last week that the bankruptcy would ensure payments to as many as 150 potential claims of sex abuse by clergy.

Spokane's diocese has assets worth about $8.3 million, including the Chancery Building, a seminary and properties given to the diocese, Cross said Friday. Some of those assets may be restricted, Skylstad said.

The diocesan assets are well below the $57 million being sought in lawsuits already filed by 26 alleged victims of just one priest. There are 19 pending civil lawsuits filed by 58 plaintiffs.

The diocese's net worth figure does not include the properties of 81 individual parishes, Catholic hospitals, Gonzaga University or several Catholic high schools, which are separate corporations, Cross said.

Skylstad said he thinks other dioceses will seek bankruptcy reorganization, although he does not know how many.

"There are some certainly out there. We're continuing to sort that out," Skylstad said. "This is a whole new area of issues for us. I suspect there will be other dioceses who will declare Chapter 11 reorganization."

Skylstad repeated his pledge to continue to build on the reforms adopted in Dallas in June 2002 to protect children from sexual abuse.

Spokane, with 90,000 parishioners in Eastern Washington, would become the smallest diocese to file for bankruptcy reorganization.

Skylstad was elected Monday to a three-year term, succeeding Bishop Wilton Gregory of Belleville, Ill.

Skylstad, who was Gregory's vice president, said the bishops' conference will enter "deep" discussions on important issues facing the American Catholic church, such as a new adult catechism and strengthening social teachings.