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	Diocese of Wilmington Ordered to Reveal More By Beth Miller News Journal May 17, 2011 http://www.delawareonline.com/article/20110517/NEWS01/105170349/Diocese-Wilmington-ordered-reveal-more?odyssey=mod|newswell|text|Home|s WILMINGTON -- The Catholic Diocese of Wilmington was ordered Monday to disclose additional information to its creditors -- including its intention to continue providing financial assistance to several priests and former priests on the bishop's 2006 list of those credibly accused of sexual abuse. But soon -- possibly as early as next week -- the diocese's final disclosure statement, its reorganization plan and hundreds of ballots will be in the mail to creditors, including about 150 survivors of clergy sexual abuse, two banks and more than 1,000 lay employees of the diocese. They will vote whether to approve a "settlement plan," a negotiated deal that pays $77.4 million in claims to abuse survivors and releases the diocese from further litigation, or an alternative plan that divides up diocese assets in court, a case-by-case option the diocese says would result in long-term litigation and divert more assets to legal fees. Judge Christopher Sontchi, in a two-hour hearing Monday, ordered more financial analysis -- including the amount of contributions expected from parishes and other Catholic entities -- and deferred some objections to the confirmation phase of the process, a lengthier hearing in which details of the plan are debated. Depending on the outcome of the upcoming vote, the confirmation hearings could begin in late June or July. At issue was the disclosure statement, a detailed financial account intended to give creditors information to decide whether to approve the reorganization plan. Lay employees objected that it offered too little information to make a decision and unfairly discriminated against some creditors while favoring abuse survivors' claims. Abuse survivors objected to plans to include abusive priests in the clergy pension plan. And the attorney for one survivor said it was impossible to decide which plan was best unless the value of each parish was known. Assessed values of each parish are unlikely to be in the mix, and Los Angeles attorney James Stang, representing the Official Committee of Unsecured Debtors (which includes about seven abuse survivors) said such detail would take months and provide little benefit. But Sontchi did ask for a fuller analysis of liquidation alternatives -- including three perspectives on restricted funds and other disputed money. A comparison will allow creditors to compare "apples to apples," he said. Diocesan attorney Patrick Jackson said they would try to provide such analysis. The lay employees' committee argues that the diocese mismanaged its pension funds, mixed pension money with other investments and left them with little more than a promise to honor pension agreements. But diocesan attorney Robert Brady said the diocese is adding the provision to its plan, which would make vested pension agreements part of its court-approved obligation. Sontchi had strong words for a letter Bishop W. Francis Malooly sent to diocese employees last week -- in which he promised to honor pension obligations -- saying it was "as close as it can come to violating the law" that forbids soliciting support while disclosures remain under negotiation. The bishop's letter was informative, though, and Sontchi said its message about future pension plans should be included in the revised disclosure. Attorney Thomas S. Neuberger, representing 99 survivors, said including abuser priests in ongoing financial assistance is "business as usual" for the diocese and bishop. "While the pensions of teachers are being jeopardized, the bishop seeks to honor pedophile priests who ruined over 100 lives and cost the [diocese] more than $100 million so far in compensation for survivors and in legal fees paid to its own lawyers." In its original motion to include assistance for the priests, the diocese said such a provision was an obligation to those priests who had not been laicized. It cut $1,000 in monthly assistance to former priest Francis DeLuca, against whom 20 suits were filed, but said it would continue to provide medical coverage for him. "Corporal works of mercy such as the provision of charity to Mr. DeLuca are fundamental to the Christian faith," the diocese argued in its original filing, "and there is no 'bad person' exception to Catholic charity."
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