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	Wilmington Diocese Files for Bankruptcy Reorganization The Catholic Review October 20, 2009 http://www.catholicreview.org/subpages/storyworldnew-new.aspx?action=7027 WILMINGTON, Del. (CNS) -- Bishop W. Francis Malooly of Wilmington announced Oct. 18 that the diocese has filed for Chapter 11 reorganization under the U.S. Bankruptcy Code in order "to provide the fairest possible treatment of all victims of sexual abuse by priests of our diocese. This is a painful decision, one that I had hoped and prayed I would never have to make," he said in a statement. "However, after careful consideration and after consultation with my close advisers and counselors, I believe we have no other choice." He said that, given the diocese's "finite resources," the bankruptcy filing offers "the best opportunity" to compensate abuse victims. "Our hope is that Chapter 11 proceedings will enable us to fairly compensate all victims through a single process established by the bankruptcy court," he said. The bishop explained that the diocese was engaged in negotiations regarding eight cases that were to go to trial Oct. 19, but the parties could not reach a settlement. "Our concern throughout the negotiations was that too large a settlement with these eight victims would leave us with inadequate resources to fairly compensate" other claimants, numbering 133, he said.
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