A federal judge in a bankruptcy case involving the Roman Catholic Diocese of Harrisburg has ruled that church officials may not shield from liability such assets as $50 million in Harrisburg real estate.
Bankruptcy filings both in Pennsylvania and across the country fell by about half between 2019 and 2021, according to the Administrative Office of the U.S. Courts.
As part of its bankruptcy settlement agreement, the Diocese of Harrisburg could stipulate that individuals who had potential claims against the diocese but did not join the bankruptcy case could be barred from suing the diocese, its insurers and parishes.
The sale includes the amusement park and its rides, including the historic Blue Streak roller coaster, as well as the water park, the beach area, Hotel Conneaut, a campground and active leases on assets.
The hospital’s owner had previously claimed it was not responsible for those costs, but when U.S. Bankruptcy Judge Kevin Gross threatened to change the hospital’s bankruptcy case from a Chapter 11 reorganization to a Chapter 7 liquidation, the effort to find a solution was taken more seriously.
An attorney for the diocese says it’s located 79 bank accounts for such diverse uses as a high school cafeteria and a basketball boosters’ club.
The diocese has been under financial strain from legal fees and payouts to people its clergy and other affiliates abused over many decades.
