What happened is that a U.S. bankruptcy court judge rejected a previously announced $45.7 million settlement, saying it did not include all the parties and potential parties. The judge urged the many lawyers involved to get into mediation.
The Spokane diocese filed for bankruptcy in 2004. Lay people in the individual parishes of the diocese disliked the $45.7 million deal because they felt it would leave them not only holding the bag but holding it indefinitely.
Get this: Earlier this week, says the AP, the lawyers for parties not in the now-thrown-out deal proposed "an alternative plan that would assess individual parishes nearly two-thirds of the market value of their churches and schools in exchange for avoiding possible foreclosures."
We had all better keep seeking the intercession of the Blessed Mother, St. Vibiana and Padre Serra to preserve our Archdiocese and to restore it to all possible holiness and fruitfulness.