COLUMBIA, S.C. — A reorganization plan approved by a federal bankruptcy judge Tuesday will allow PTL to remain tax-exempt and provide for its "resurrection," the television ministry's trustee said.
The plan was modified Tuesday to give contributors more power and to give the Internal Revenue Service authority to fine-tune PTL's reorganization so it remains tax-exempt. Ministry officials said PTL's survival is dependent on donations and its nonprofit status.
The reorganized PTL will be a model of accountability for religious broadcasting companies across the country, said David Clark, the court-appointed trustee who will become PTL's board chairman when the plan takes effect May 2.
"This is the beginning of a whole new resurrection of PTL," he said.
Donations Key to Plan
Judge Rufus Reynolds of U.S. Bankruptcy Court said the plan's success hinges on the continued contributions of PTL donors. His approval is a benchmark for the ministry's effort to recover from the revelations of sex scandals and financial mismanagement that followed the resignation of founder Jim Bakker, who left March 19 after admitting a tryst with former church secretary Jessica Hahn.