Bankruptcy Court Can’t Join Catholic Affiliates to Archdiocese Case
Consolidation would violate Code’s prohibition on involuntary bankruptcies of nonprofits
A federal District Court in Minnesota has affirmed a Bankruptcy Court decision refusing to join more than 180 separate Catholic affiliates in the bankruptcy proceeding of the Archdiocese of St. Paul and Minneapolis. The Court has ruled that the action would violate the Bankruptcy Code’s prohibition against involuntary bankruptcies against a corporation that is not “a moneyed, business or commercial corporation.”
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