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  Judge Questions Davenport Diocese's $37 Million Settlement

Associated Press, carried in WHO
March 5, 2008

http://www.whotv.com/Global/story.asp?S=7972649&nav=2HAB

DAVENPORT, Iowa - The Davenport Diocese's $37 million settlement with victims of clergy abuse is being questioned by a bankruptcy judge.

Today Judge Lee Jackwig refused to approve the disclosure statement that explains the diocese's reorganization plan to emerge from bankruptcy protection. Jackwig says the statement needs to better explain the relationship between the diocese and its 83 parishes -- something attorneys said they would do.

The statement must be approved before the plan can be voted on by the diocese's creditors.

Attorneys for both sides say they are surprised by the judge's decision but confident the plan is not in jeopardy.

Attorneys will now try to work out the issues by an April 2 court hearing.

The diocese filed for bankruptcy in 2006, saying it did not have the money to settle the claims stemming from its clergy sexual abuse scandal. The diocese and creditors reached a settlement in November.

 
 

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