The Archdiocese of Milwaukee has been running a tab when it comes to professionals working on its Chapter 11 bankruptcy case, and lawyers for unsecured creditors—chiefly survivors of sexual abuse—say it’s time to pay the bills.
Court records show the archdiocese has stacked up more cash than it projected back in January 2013, when it petitioned the bankruptcy court to suspend monthly professional fee payments on the grounds money was tight, according to papers filed by creditor lawyers led by James Stang. Mr. Stang represents the official committee of unsecured creditors in the Archdiocese of Milwaukee case. With a few exceptions, bankruptcy professionals have not been paid in 17 months, court papers say.
As of the end of June, the archdiocese reported it had run up $5.8 million worth of fees, court records show. Whyte Hirschboeck Dudek S.C., the lead lawyer for the archdiocese, is owed the most, $2.9 million. Lead creditor firm Pachulski Stang Ziehl & Jones is owed $1.9 million, court records show. Lawyers for survivors contend that the archdiocese has the money, and it should pay.