THE LATEST: Milwaukee Archdiocese bankruptcy case sent to mediation

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MILWAUKEE (AP) — A federal judge is sending the Archdiocese of Milwaukee’s bankruptcy case to mediation.

Bankruptcy Judge Susan Kelley said Wednesday that she considers mediation the best bet for resolving the hard-fought, three-year-long case.

The archdiocese filed for bankruptcy in 2011, saying it would not have the money to pay if lawsuits filed by victims of clergy sexual abuse went against it. More than 500 abuse victims have since filed claims in bankruptcy court.

The mediation will involve attorneys for the archdiocese, sexual abuse victims and others owed money by the archdiocese.

One focus will be a $55 million cemetery trust fund that victims have hoped to tap for compensation. Their attorneys are currently appealing a district court decision putting it off-limits in the bankruptcy case.