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Delaware Diocese To File Modified Bankruptcy Reorganization Plan

By Howard M. Friedman

The Wilmington (DE) News Journal yesterday reported that next week the Roman Catholic Diocese of Wilmington, Delaware, currently in bankruptcy court (see prior posting), will file a new reorganization plan that will offer higher settlements to some 150 clergy abuse victims who have sued.  The increased amounts are possible because under the new plan individual parishes and religious orders will contribute to the settlement pool. Further complications could arise, however, as on Tuesday a group of non-ordained church employees filed suit in bankruptcy court seeking to prevent $4.4 million of its pension funds from being included in the pool used to compensate abuse victims.

Full post as published by Religion Clause on January 06, 2011 (boomark / email).