The Crystal Cathedral is filing for bankruptcy. This is one of the original megachurches built in the United States. The “Hour of Power” telecast originates from the Crystal Cathedral. Both the church and the telecast were founded by Rev. Robert Schuller, Sr. The Crystal Cathedral bankruptcy is intended to protect the church from more than $43 million worth of debts.
Bankruptcy for Crystal Cathedral
For a few months, there has been the possibility of the Crystal Cathedral going bankrupt. A moratorium was agreed to by a committee of creditors earlier this year, in April. The creditors and Crystal Cathedral church had a chance to make payment plans with this decision. 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.
Those who are creditors for Crystal Cathedral
Reorganization is allowed with the chapter 11 bankruptcy being filed by the Crystal Cathedral. Chapter 11 being granted would be great for the Crystal Cathedral. The church could continue operations while trying to pay back the creditors. 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. Granting the Crystal Cathedral a bankruptcy would allow for protection for the church. The church could reorganize and pay off debt still.
What Crystal Cathedral plans to do if bankruptcy is granted
Paying creditors and filing bankruptcy has left Crystal Cathedral with only one plan. This plan is to change financial plans. All the expenses are things that church is paying for with donations. About $2 million comes in every month in donations. The church and its leaders say that they have every intention of paying off all creditors, eventually. The courts will be the overseer of the debt repayment while Crystal Cathedral is in bankruptcy. The church makes financial responsibility something expected of its members. Crystal Cathedral will now be tested on whether it can practice its own teachings.
Yahoo News: http://news.yahoo.com/s/ap/20101018/ap_on_re_us/us_crystal_cathedral
Christianity Today: http://blog.christianitytoday.com/ctliveblog/archives/2010/10/crystal_cathedr_1.html
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