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  Abuse Victims Reject Del. Diocese Bankruptcy Plan

San Antonio Express
January 11, 2011

http://www.mysanantonio.com/news/article/Abuse-victims-reject-Del-diocese-bankruptcy-plan-950107.php

The official creditors committee in the Diocese of Wilmington's bankruptcy case is rejecting the diocese's amended reorganization plan, which offers victims of priest sex abuse more money than earlier plans did.

Abuse victim and committee co-chair John Vai accused the diocese on Tuesday of a dictatorial and high-handed effort to impose a plan on abuse survivors without their consent.

Committee attorney Jim Stang said the diocese has abandoned mediation efforts and filed the plan with no input from abuse survivors. Stang said the creditors committee is considering asking for court permission to file its own plan.

The diocese's new plan is based on non-debtor Catholic entities contributing about $58 million in cash and real estate valued at more than $9 million, to pay abuse survivors in exchange for dropping lawsuits against pedophile priests.

The diocese claims the plan allows for payments averaging more than half a million dollars for the roughly 150 people with abuse claims against the diocese or its parishes.

But co-chair Matthias Conaty says the creditors committee is adamant that certain non-monetary steps be taken, including the public release of all internal Church documents regarding priest abuse and subsequent cover-ups.

 
 

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