Crystal Cathedral bankruptcy - More than $43 million due

One of the original megachurches, the Crystal Cathedral, has filed for bankruptcy. While the Crystal Cathedral gets thousands of visitors a month, it is not their only product. The Crystal Cathedral also generates the “Hour of Power” telecast. A large group of creditors claim that Crystal Cathedral owes over $40 million. This consists of millions of dollars to local vendors.

Bankruptcy problems for Crystal Cathedral

Bankruptcy is a real possibility for the Crystal Cathedral. In fact, it has been for a few months now. Earlier this year, a committee of creditors got together. They agreed to a moratorium too. This decision was meant to help the Crystal Cathedral church and creditors. Repayment plans could have been worked out. The moratorium was no help. It didn’t work. About $7.5 million is owed to vendors and $36 million in mortgage payments are what the Crystal Cathedral needs to pay.

Crystal Cathedral’s creditors

The Crystal Cathedral is filing a chapter 11 individual bankruptcy. That means reorganization is bound to happen. If chapter 11 is given, the Crystal Cathedral would be allowed to continue operations when attempting to settle creditors. There are numerous lawsuits that Crystal Cathedral is dealing with right now. One woman wants $50,000 for the camels she’s been renting the church for the nativity pageant it has yearly. The Crystal Cathedral bankruptcy would provide a modicum of protection for the church while it tries to re-organize and pay down debt.

The bankruptcy plan for Crystal Cathedral

While attempting to pay back creditors and file for bankruptcy, Crystal Cathedral is taking on a new financial plan. All the expenses are things that church is paying for with donations. About $2 million comes in every month in donations. The church has slashed 50 employees and a number of stations from the “Hour of Power” broadcast. The church and its leaders say that they have each intention of paying down all creditors, eventually. The repayment has to be overseen by the court. Until Crystal Cathedral is out of bankruptcy, this can be the case. Crystal Cathedral will have to show that is practices what is preaches as it is a church that encourages financial responsibility.

Citations

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