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  Creditors in Delaware Diocese Bankruptcy Meet

By Randall Chase
CBS 3
December 1, 2009

http://cbs3.com/wireapnewsde/Creditors.meeting.held.2.1342813.html

WILMINGTON, Del. (AP) ? Representatives of the Catholic Diocese of Wilmington faced questions about its finances and its handling of pedophile priests Tuesday at a meeting of creditors in its Chapter 11 bankruptcy case.

The meeting began with Monsignor Thomas Cini, vicar general for the diocese, answering questions from an attorney for the U.S. trustee's office about the administrative and business structure of the diocese.

The diocese's unsecured creditors, mostly alleged victims of priest sexual abuse, later had a chance to question Cini and Joseph Corsini, chief financial office for the diocese.

Cini maintained that the diocese's October bankruptcy filing was the best course it could take in the face of more than 130 lawsuits alleging childhood sexual abuse by Catholic clergy.

"I hope you understand that bankruptcy is meant to give all you a fair and equitable compensation for the damages that you have suffered," he told alleged victims of priest sex abuse, who constitute the entire membership of the diocese's unsecured creditors committee.

Lawsuits against the diocese have been put on hold because of the bankruptcy filing. The diocese is requesting that the automatic halt to litigation be extended to individual parishes named as co-defendants in the lawsuits.

The lawsuits allege child sexual abuse by dozens of diocesan and religious order priests dating to the early 1960s. Following the arrest of former priest Francis DeLuca in 2006 on charges of repeatedly abusing his grandnephew in New York, the late Bishop Michael Saltarelli released the names of 20 diocesan priests, including DeLuca, against whom the diocese had substantiated allegations of child sexual abuse.

"Our concern is for you; I know that is sometimes hard to believe, especially for people who have suffered at the hands of priests," Cini told alleged abuse victims Tuesday, adding that the diocese would do its "utmost" for them.

But Corsini drew a hostile reaction when, in response to a question from victims' attorney John Manly about the diocese's assets and liabilities, said he was looking at "a roomful of liabilities." He quickly apologized for the remark.

Cini was asked why the diocese, up until its bankruptcy filing, had continued to pay pensions and other benefits for priests known to be child abusers, including those removed from the ministry.

"We're required by canon law to provide for them," he said.

Robert Jacobs, another attorney representing alleged abuse victims, asked why the diocese had not included the property of a Wilmington parish that closed two years ago in its list of assets, even though proceeds from the sale of the property will go to the diocese.

Cini said the decision was made on the advice of attorneys. Asked for more information, he deferred to attorney John Dorsey, who cited lawyer-client privilege in refusing to answer the question.

Jacobs' law partner, Thomas Crumplar, criticized Cini for hiring a public relations firm that has been paid a $110,000 retainer to represent the diocese during the bankruptcy.

"What are they doing to help victims or assist in the bankruptcy?" asked Crumplar, who suggested that Bishop W. Francis Malooly could double the diocese's tax on parishes to 25 percent to help compensate members of the faithful who are victims of priest abuse.

"I can assure you there would be more than one petition to Rome should he decide to increase it to 25 percent," Cini replied.

 
 

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