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  Diocese of Wilmington's Lay Workers Get Response to Their Concerns

By Maureen Milford
News Journal
April 14, 2010

http://www.delawareonline.com/article/20100414/NEWS01/4140342

Concerned teachers, support staff and other lay workers for the Catholic Diocese of Wilmington, who are increasingly fearful about the fate of their pensions, are a step closer to having an official role in the diocese's bankruptcy proceeding.

Roberta A. DeAngelis, acting U.S. Trustee for the region, sent letters dated Monday to an unknown number of the 2,000 lay employees of the diocese asking about their interest in serving on a second official committee of unsecured creditors. The U.S. Trustee, who is charged with appointing official creditors' committees, can create additional panels "to increase participation in the Chapter 11 proceedings."

While anyone with a claim against the diocese can be heard in court, the law provides that "official" committees may hire lawyers or other professionals at the debtor's expense. The bankruptcy judge must approve those decisions.

Currently, there is only one official committee, which is made up entirely of survivors of clergy sexual abuse. It was formed last year.

The diocese, which has pastoral charge of more than 230,000 Roman Catholics in Delaware and on Maryland's Eastern Shore, filed for bankruptcy in October under the weight of scores of clergy sexual-abuse lawsuits. Cases against the diocese, which was potentially facing liabilities in the tens of millions of dollars, were halted after the diocese filed for bankruptcy.

In recent weeks, lay employees have become increasingly fearful about the disposition of money for their pensions. They are concerned their interests are in conflict with those of the existing committee of abuse survivors and that the workers' interests were not being adequately represented by them.

Privately, some lay employees fear that they'll end up with pennies on the dollar on their pensions because money that would have gone into their retirement plans will be put into the asset pool divided among all creditors.

To protect their interests, a group of lay employees wrote to the U.S. Trustee in March asking for a second, separate committee. Both the diocese and the official creditors committee objected to a second panel. Lawyers for the creditors committee did not comment Tuesday. Lawyers for the diocese could not be reached.

For a new committee of lay employees to be formed, at least three people must be willing to serve, according to an information sheet provided by the U.S. Trustee.

Lay workers have so far declined to speak publicly for fear of retribution. But one lay worker said privately Tuesday that there should be at least three employees willing to come forward.

To determine the eligibility and willingness of employees to serve on a committee, the U.S. Trustee also sent out questionnaires. Among other things, the forms ask about employment status, pension status and if the employee has a claim against any entity affiliated with the diocese. They must be returned to the U.S. Trustee by Tuesday.

Donald Detweiler, a Wilmington lawyer who has been representing the lay employees, said he expects an official committee comprising the lay workers' representatives will be appointed early next week.

Contact: mmilford@delawareonline.com

 
 

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