SPOKANE, Washington (AP) — The Spokane Catholic Diocese has agreed to pay at least $48 million (euro36.6 million) to people molested by priests as a part of a deal to emerge from bankruptcy, a federal mediator announced.Federal Bankruptcy Judge Gregg W. Zive in Reno, Nevada, on Thursday said the settlement would provide survivors “with some measure of closure and allow them to move forward and continue the healing process.”

The proposed reorganisation plan was filed in federal bankruptcy court in Spokane. It still must be approved by victims and another bankruptcy judge.

Church spokesman Eric Meisfjord said the diocese would have no immediate comment.

The settlement would be financed by $20 million (euro15.26 million) from six insurance carriers; another $18 million (euro13.7 million) from the sale of the bishop’s office building and other assets and contributions from Catholic entities; and$10 million (euro7.63 million) from the diocese’s 82 parishes, Zive said.

The number of victims who would be covered by the settlement was not immediately clear. About 150 individual claims were filed against the diocese as part of the bankruptcy, although not all of those chose to sue.

In addition to helping abuse victims, Zive said, the settlement would allow the diocese “to continue its ministry and to begin its own journey of renewal”.