The bankrupt Crystal Cathedral will step aside while its creditors committee works on a plan for the church to exit bankruptcy, lawyers said in a hearing Monday.
On Sunday, the church announced that it would back away from considering proposals to purchase the Garden Grove campus in favor of attempting to raise more than $50 million to repay creditors through donations.
Marc Winthrop, the cathedral’s bankruptcy attorney, reaffirmed that the church is relying on a "faith-generated belief" that funds will be generated, while recognizing that the creditors committee will move forward with a plan to exit bankruptcy.
If the church is able to raise funds before a creditors plan is approved by bankruptcy judge Robert Kwan, it will file an exit plan, Winthrop said.
Winthrop said the church has a duty to make "our best efforts to make sure" all creditors are paid.
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