BishopAccountability.org
 
  Diocese Doesn't Bankruptcy File Plan

By Gregg Hennigan
The Gazette
November 17, 2007

http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20071116/NEWS/711160048/1006/news

The Roman Catholic Diocese of Davenport did not file its bankruptcy reorganization plan Friday despite a deadline and indications from a diocese official earlier in the day that it would do so.

The diocese issued a news release Friday afternoon saying it had agreed with the case's creditors committee to delay filing the plan, which was due Friday in the U.S. Bankruptcy Court for the Southern District of Iowa.

The plan will detail how the diocese expects to emerge from bankruptcy and how much it will pay its creditors, most of them being people who have accused diocese priests of sex abuse.

"The parties are continuing with mediation to reach a settlement of the bankruptcy case," the release said.

Deacon David Montgomery, the diocese's spokesman, told The Gazette on Friday morning that it was his understanding that the plan would be filed later in the day.

It was not clear why that did not happen, and the news release said the two sides would have no further comment on the matter. The diocese, its attorneys and the attorneys for the creditors committee, which is made up of alleged abuse victims, have declined to discuss the case for the past several months.

The diocese, which includes about 105,000 Catholics, filed for Chapter 11 bankruptcy protection in October 2006 in the face of mounting lawsuits from its clergy sexual abuse scandal.

A total of 156 claims from alleged abuse victims have been filed in the case, according to court records.

The bankruptcy court has already approved two requests by the diocese and the creditors committee to postpone the reorganization plan's deadline.

In those instances, the two sides said they wanted more time to review claims against the diocese and to explore possible insurance coverage that could add millions of dollars to the settlement.

It was not immediately clear when the diocese now expects to file a reorganization plan.

Contact the writer: (319) 339-3175 or gregg.hennigan@gazettecommunications.com

 
 

Any original material on these pages is copyright © BishopAccountability.org 2004. Reproduce freely with attribution.