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	In Bankruptcy Hearing, Diocese Says It Still Needs Loan to Meet Obligations By Sean O'Sullivan News Journal July 14, 2011 http://www.delawareonline.com/article/20110714/NEWS01/110714016/In-bankruptcy-hearing-diocese-says-still-needs-loan-meet-obligations A hearing to confirm the Catholic Diocese of Wilmington's exit from Chapter 11 bankruptcy resumed today with the diocese conceding it still has work to do to finalize its financial arrangements. Joseph Corsini, the chief financial officer for the diocese, testified it needs a $9.5 million loan to meet all its obligations as it exits bankruptcy, and as of today, it has not finalized that arrangement with a lender. He said it would take a week or more before that loan could be secured, but he said that as a backup the diocese has arranged an $8.5 million loan from other "non-debtor" Catholic entities -- along with money from other church funds -- at a higher interest rate to make up the difference should the commercial loan fall through. Corsini said the preference would be to secure the commercial loan because of the low interest rate. Attorneys for the diocese and those representing survivors of priest abuse hope this level of detail will be enough to satisfy U.S. Bankruptcy Judge Christopher Sontchi and win his approval for the plan, which includes a $77.4 million payment to a trust fund for past victims of clerical sexual abuse. If Sontchi signs off, it will end more than two years of bankruptcy for the diocese and resolve hundreds of pending priest sexual abuse lawsuits. Before Sontchi makes a ruling on the plan, he will be dealing with several objections raised by various parties, including one by attorney Thomas Neuberger, on behalf of the victims, who want to bar the diocese from paying any form of charity to abuser priests. Contact Sean O'Sullivan at 324-2777 or sosullivan@delawareonline.com
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