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Urgent Report on Bankruptcy Filing

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Enviado Viernes, 24 de Enero de 2003 - 08:46 pm:   

2002/07/30

February 6, 2002

Dear Maharajas and Prabhus
Please accept my humble obeisances.
All glories to Srila Prabhupada.

Below and attached as a file, please find a copy of a media release that will be distributed this morning, February 6 at 11:45 a.m. (Eastern Standard Time-USA). It explains the Chapter 11 bankruptcy reorganization that will be filed by many ISKCON temples in North America later this month.

This impending action is likely to draw widespread media attention. Please note it carefully. Devotees in leadership positions and communications roles should familiarize themselves with it. At the very least, members of our communities and congregations will be concerned and want to understand clearly what is taking place. GBC's are requested to forward this to your TP's.

As explained in the release, First and foremost this is not a liquidation. In the United States, a corporation (ISKCON temples are all individual corporations), when facing financial claims against them that are beyond their capacity to pay, can file a Chapter 11 bankruptcy reorganization. In brief, this allows the corporation to continue to operate and to work with the Federal Court to reach an agreement to pay debtors an amount it can reasonably assume. Similar actions have been taken by many, many respectable organizations in the past, including Texaco, Continental Airlines, Federated Department Stores (Macy's and Bloomingdales), etc.

Second: the bankruptcy reorganization will allow ISKCON temples to set up a reasonable and just fund, under the guidance of the Federal Court, for young people that may have been abused.

Third: this arrangement will protect Srila Prabhupada's temples from claimants, including the excessive demands of the Mr. Turley suit, which threaten to close many temples.

If you would like more legal details of reorganization, please contact David Liberman, Amarendra dasa, at (310) 277-9288. The number is also listed on the release.

As always, Amarendra and I strongly advise that media inquiries be directed to his office or mine. Temples that are directly involved in the Turley suit may find it necessary to directly respond to local media. If so, it is essential that such a leader and/or communications specialist answers questions in keeping with information in the official release. Temples are still in a serious legal battle and questions regarding allegations of past abuse and other issues must be referred to the attorneys or myself.

Thank you.
Your servant, Anuttama dasa (301) 299-9707, ISKCON Communication Director

PS. For those of you who are not up to date on the recent status of the suit, here is the release when the suit was dismissed from Federal Court.

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Press Release

Krishna Temples seek chapter 11 Bankrupcy Protection
Reorganization facilitates fund for abused children

Date: February 6, 2002
Contact: Anuttama Dasa, ISKCON Communications International, (301) 299-9707
David Liberman, Attorney, (310) 277-9288
Sandy Frey, Bankruptcy Counsel, (310) 277-7400

Washington, D.C.-At least a dozen temples, related entities and individuals affiliated with the International Society for Krishna Consciousness (ISKCON), better known as the Hare Krishna Movement, will file for Chapter 11 bankruptcy protection later this month.

The Chapter 11 bankruptcy focuses on reorganization rather than liquidation of religious assets. It is being filed to deal with claimants including a $400 million dollar lawsuit against Krishna temples. That suit, first filed in Federal Court in June 2000, alleges children were abused at the religious society's boarding schools in the 1970's and 1980's. The Krishnas prevailed when the suit was dismissed in September 2001, but a similar $400 million suit was later filed in Texas State Court.

The lawsuit, ISKCON leaders say, seeks far more money than the financial value of all the Krishna temples in North America. In essence, the suit threatens to shut down an entire religion.

Rather than wasting millions of dollars to fight this suit, Chapter 11 reorganization will help ISKCON communities to establish a substantial, yet reasonable, fund to help any young person who may have been abused, said Anuttama Dasa, ISKCON Director of Communications. We want first and foremost to heal our communities and our young people, Dasa said.

Through the reorganization, Krishnas hope to assure that all victims of past abuse-including youth who may have chosen not to join the suit-are compensated according to the severity of their grievance.

Chapter 11 protection will also assure that innocent families and congregations do not have their places of worship sold out from under them, said Dasa.

We believe that innocent people should not be punished for the deeds of individual deviants who acted in total violation of our religious principles and teachings.

The New York Times reported in 1999 that the Krishnas were unusually candid in their efforts to address past abuse. In 1990, ISKCON established policies mandating abuse prevention training and the reporting of any allegations of abuse to government authorities. In 1996, an independent Children of Krishna organization was formed to provide grants for education and training for Krishna youth. In 1998, a professionally staffed Child Protection Office was established to investigate allegations of past abuse, provide grants for Krishna youth who may have been abused, and to assure the ongoing protection of Krishna children.

Chapter 11 is a further effort to address past problems by creating an orderly and efficient procedure for dealing with and maximizing return to claimants, said Sandy Frey, Bankruptcy Counsel.

The International Society for Krishna Consciousness (ISKCON) is part of the ancient Vaishnava tradition, a monotheistic faith within Hindu culture. ISKCON was founded by HDG A.C. Bhaktivedanta Swami Prabhupada, who first brought the Krishna tradition from India to the west in 1965.

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