One of the original megachurches, the Crystal Cathedral, has filed for bankruptcy. Founder Rev. Robert H. Schuller built the Crystal Cathedral and “Hour of Power” telecast. The Crystal Cathedral bankruptcy owes a lot more than $43 million to various creditors.
Crystal Cathedral bankruptcy
The Crystal Cathedral bankruptcy has been a possibility for several months. Earlier this year, a committee of creditors got together. They agreed to a moratorium too. This was intended to give the creditors and Crystal Cathedral church a chance to negotiate repayment plans. The moratorium, nevertheless, fell apart. About $7.5 million is owed to vendors and $36 million in mortgage payments are what the Crystal Cathedral needs to pay.
Crystal Cathedral letting down some creditors
The Crystal Cathedral is filing a chapter 11 individual bankruptcy. That means reorganization is bound to happen. Crystal Cathedral could make an effort to pay back creditors while continuing operations if the chapter 11 is allowed. There are currently various lawsuits and writs on the Crystal Cathedral, including one $50,000 debt owed to a woman who rents out camels for the Crystal Cathedral’s yearly nativity pageant. The Crystal Cathedral bankruptcy would provide a modicum of protection for the church while it attempts to re-organize and pay off debt.
What bankruptcy proceeding will change in Crystal Cathedral
While attempting to settle creditors and file for bankruptcy, Crystal Cathedral is taking on a new financial plan. The church receives over $2 million every month in donations which is getting used to pay back the expenses. The church has slashed 50 employees and various stations from the “Hour of Power” broadcast. The church and its leaders say that they have every intention of paying down all creditors, eventually. The courts would be the overseer of the debt repayment while Crystal Cathedral is in bankruptcy. For a megachurch that encourages financial responsibility, this could be the ultimate test of whether Crystal Cathedral can practice what it preaches.
Information from
Yahoo News
news.yahoo.com/s/ap/20101018/ap_on_re_us/us_crystal_cathedral
Christianity Today
blog.christianitytoday.com/ctliveblog/archives/2010/10/crystal_cathedr_1.html
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