Monday, August 1, 2011

Bankrupt Crystal Cathedral to rely on faith; new suitor emerges

The Crystal Cathedral

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.

No comments:

Post a Comment

Comment

Comment