Archdiocese says it's headed toward insolvency - WXOW News 19 La Crosse, WI – News, Weather and Sports |

Milwaukee Archdiocese says it's headed toward insolvency

MILWAUKEE (WXOW) -- The Archdiocese of Milwaukee says it is going broke and wants a bankruptcy judge to allow it to suspend payments to attorneys and consultants.

Archdiocese spokesman Jerry Topczewski says savings, reserves and investment earnings have all been exhausted. And if it doesn't stop paying attorneys and consultants the archdiocese will be unable to pay its monthly operating expenses beginning in April.

The archdiocese would continue to pay its own attorneys to challenge sex abuse claims from its insurance carriers.

The attorney for the bankruptcy creditors committee, James Stang, blames the archdiocese's cash flow problems on its aggressive efforts to throw out hundreds of sex abuse claims. The Milwaukee Journal Sentinel reports Stang says nearly $9 million in fees have been paid so far.

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