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	Bankruptcy Judge Releases San Diego Diocese Funds for School Associated Press, carried in San Luis Obispo Tribune March 9, 2007 http://www.sanluisobispo.com/mld/sanluisobispo/16870636.htm San Diego — A federal judge overseeing the bankruptcy of the Roman Catholic Diocese of San Diego agreed to release funds on a temporary basis for construction of a new high school. Judge Louise DeCarl Adler ruled Thursday that the diocese can withdraw approximately $2.7 million to cover construction costs until April 11, when another hearing is scheduled. Attorneys representing more than 140 people claiming they were sexually abused by priests had challenged the school project, accusing the diocese of using it to shrink the amount of money available to compensate victims. Terry Giles, one of the attorneys, said that a $50 million interest-free loan from a Utah charitable organization for construction of the new Mater Dei Catholic High School campus was really a grant. Diocese officials said the money from the ALSAM Foundation was a four-year interest-free loan. Former ALSAM officials and the organization's 2005 year-end report also said it was a loan. The school is nearly complete and is accepting enrollment for September. The diocese filed for bankruptcy Feb. 27, just hours before the first civil trial was slated to go forward in San Diego Superior Court.
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