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  Catholic Diocese of Wilmington Emerges from Bankruptcy

By Beth Miller
News Journal
September 26, 2011

http://www.delawareonline.com/article/20110926/NEWS/110926042/Diocese-emerges-from-bankruptcy?odyssey=nav|head

The Catholic Diocese of Wilmington this afternoon completed the transfer of more than $77.4 million to a trust fund for survivors of clergy abuse, and with the payment has emerged from bankruptcy after almost two years.

Diocese attorney Anthony G. Flynn said the money changed hands by wire transfer and check, starting last Friday.

The money was part of an extensive list of settlement terms included in the plan confirmed in July by U.S. Bankruptcy Judge Christopher Sontchi.

In addition to the money for the survivors’ trust fund, the diocese also deposited $5 million into the lay employees trust fund to cover future pension payments, as required by the bankruptcy plan.

Yet to be completed are nonmonetary obligations required by the plan -- including release of abuser priest personnel files and appointment of a special arbitrator and a child protection consultant. Deadlines for those requirements were extended by agreement of all parties.

Today’s release from bankruptcy is an important day for the diocese, Flynn said.

“It’s a very important day from an operational perspective,” he said. “We have a lot of things to do to implement this plan -- and the nonmonetary provisions are an important part of that. So it’s not that the job is over, but the bankruptcy is over.”

The diocese filed for Chapter 11 protection in 2009 after survivors of clergy abuse filed more than 100 lawsuits under provisions of the 2007 Child Victim’s Act. The 2007 law opened a two-year window during which claimants could file civil suits that otherwise would have been barred by the statute of limitations.

With the payments complete and the plan in effect, the diocese and all of its parishes are released from any further litigation by those claimants.

Contact Beth Miller at 324-2784 or bmiller@delawareonline.com

 
 

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