Panel OKs Plan on Chapter 11

The finance committee of the Boston Archdiocese authorized the church to pursue bankruptcy proceedings as a method of settling at least 450 sexual abuse lawsuits.

Wednesday’s vote by the 12-person group is the first step toward allowing the church to reorganize under Chapter 11 of the federal Bankruptcy Code.

Such a filing would be the first by an archdiocese.

While no final decision has been made, the archdiocese said in a statement, bankruptcy is being considered as a way “to ensure an expeditious and equitable global settlement for the victims of sexual abuse by priests from the archdiocese.”

The Vatican would have to approve any bankruptcy filing.

In a statement, archdiocese spokeswoman Donna M. Morrissey said church leaders here favor a global settlement that would “serve as an alternative to resolving each case by separate litigation or negotiation.

“A mediated resolution would be preferable to seeking Chapter 11 protection,” she added.

Talks between the archdiocese and victims’ lawyers have been underway for months.

Plaintiffs’ attorney Mitchell Garabedian called bankruptcy a risky strategy because it would force the church to “reveal assets to a civil and secular court.” That court would then appoint a trustee to control the assets.