Crystal Cathedral bankruptcy - More than $43 million owed

The Crystal Cathedral is preparing on filing for individual bankruptcy. This is one of the original megachurches built within the United States. The “Hour of Power” telecast originates from the Crystal Cathedral. Both the church and the telecast were started by Rev. Robert Schuller, Sr. A large group of creditors claim that Crystal Cathedral owes over $40 million. This contains millions of dollars to local vendors.

Bankruptcy for Crystal Cathedral

Bankruptcy is a real possibility for the Crystal Cathedral. In fact, it has been for a couple of months now. In April of this year, a committee of creditors agreed to a moratorium. The collectors and Crystal Cathedral church had a chance for making payment plans with this decision. The moratorium was no help. It did not work. About $7.5 million is owed to vendors and $36 million in mortgage payments are what the Crystal Cathedral needs to pay.

Collectors of Crystal Cathedral

Reorganization is allowed with the chapter 11 bankruptcy being filed by the Crystal Cathedral. Crystal Cathedral could try to pay back creditors while continuing operations if the chapter 11 is allowed. Crystal Cathedral has a lot of lawsuits on it right now, including one where a woman who rents camels for the Crystal Cathedral’s yearly nativity pageant wants $50,000. The church might make an effort to reorganize and pay back debt when being protected, if the Crystal Cathedral bankruptcy is granted.

The plan Crystal Cathedral has for bankruptcy

While attempting to settle creditors and file for bankruptcy, Crystal Cathedral is taking on a new financial plan. The church is paying money for all expenses, out of the almost $2 million it receives each month in donations. The church has slashed 50 employees and several stations from the “Hour of Power” broadcast. The church plans on being honest about things. It wants to pay back the collectors still. The courts would be the overseer of the debt repayment when Crystal Cathedral is in bankruptcy. The church makes financial responsibility something expected of its members. Crystal Cathedral will now be tested to view if it can practice its own teachings.

Data 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