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  Bankruptcy Judge Considers Documents Outlining Diocese Settlement with Priest Abuse Survivors

The Republic
May 16, 2011

http://www.therepublic.com/view/story/9480ac1b535f4c208d0fc743e9223170/DE--Diocese-Bankruptcy/

WILMINGTON, Del. — A federal bankruptcy judge is being asked to approve documents outlining the Catholic Diocese of Wilmington's proposed reorganization plan, including a $77 million settlement with nearly 150 alleged victims of priest sex abuse.

The judge will hear arguments Monday involving the plan, which would release the diocese and its parishes from legal claims involving the priest sex abuse scandal. In return, the diocese would provide access to documents detailing how church officials handled pedophile clerics.

The diocese's official committee of lay employees is urging the judge to reject the disclosure statement outlining the diocese's plan. The committee says it does not adequately address questions about lay employees' pensions.

The diocese filed for bankruptcy protection in October 2009 on the eve of a series of trials involving child sex abuse lawsuits.

 
 

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