Project Type: Financial Counsel to Emerge From Bankruptcy
Client: Diocese of Spokane, WA
To Fully Understand Our Financial Options We Turned to CFC
SITUATION: Sexual abuse lawsuits were brought against the Diocese and bankruptcy was determined to be the fairest way to treat victims. This determination was judged to be the more compassionate path to resolution than litigation. In December 2004 the Diocese filed for bankruptcy.
The intent of the Diocese was to pay fair compensation to those abused, to pay others who were owed when the bankruptcy was filed, to pay the expenses of the bankruptcy, and to provide for non-monetary measures by the Diocese addressing abuse. The Diocese officially emerged from bankruptcy on May 31, 2007. Catholic Finance Corporation worked closely as part of the Diocesan team that organized and executed the successful effort.
CFC ROLE: CFC assisted in developing and refining the overall strategy, provided guidance and recommendations related to financing decisions, coordinated with legal advisors and assisted in composition of communcation pieces as part of the effort to raise the more than $16 million from the diocese and individual parishes needed to satify the court decision.
CLIENT REFLECTION: The dynamics and direction of this effort changed considerably as we progressed. When the need came to build the plan to fund the bankruptcy obligation, we turned to CFC, a Catholic institution. They worked very closely as part of the team and brought an expertise that we did not have. We were considering a bond issue and found them to be ideally suited to handle that dimension, in fact, the whole financial dimension of borrowing. We were especially impressed with their ability to compare major banks and bond sources and consultants and how they were able to negotiate very favorable terms. They guided us through all of the challenges and pitfalls and brought us excellent advice. They are very competent, very detailed and good to work with.
"When it comes to expertise in debt instruments, any kind from loans to capital campaigns to bond issues . . . they understand the details of all of them and they will bring to you the best value . . . something that you probably could not achieve on your own."
- Deacon Michael Miller, CFO, Diocese of Spokane