Community Corner

Crystal Cathedral Will Be Going Catholic

Chapman University is the loser as a judge rules that the Roman Catholic Diocese had the best plan for paying off the Crystal Cathedral's debt.

A federal bankruptcy judge today approved a plan by the Orange County Roman Catholic Diocese to acquire the debt-ridden Crystal Cathedral in Garden Grove.

The decision came after an hours-long hearing, and an announcement by the Crystal Cathedral Ministry's board that it had reversed its earlier backing of Chapman University as the preferred bidder and thrown its support behind the diocese instead.

Both the diocese and Chapman put forth a variety of purchase plans, with each submitted sweetened offers to keep up with the other.

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U.S. District Judge Robert Kwan eventually ruled that the diocese had the best plan for paying off the mega-church's $51.7 million debt.

The Diocese increased its $53.6-million offer to $55.4 million last week, but then, over the weekend, boosted it again to $57.5 million. Diocese officials wanted to make sure the offer covered all projected debt, including an approximate $300,000 annual annuity to the Crystal Cathedral's founder, the Rev. Robert H. Schuller, and his wife.

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Crystal Cathedral Ministry's board members had earlier designated Chapman University as the "preferred buyer," mostly based on the terms of its offer that would allow the debt-plagued church a chance to buy back its cathedral and maintain control over its cemetery.

However, financial expert Michael Vanderley testified earlier this week that Chapman's $51.5-million bid would not be feasible under most of the scenarios, which included extra claims from Schuller and his wife.

—City News Service


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