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Catholic Diocese Of Wilmington: Reorganization Plan Is Fair To Creditors, Priest Sex Abuse Victims

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WILMINGTON, Del. (AP) — Bishop Francis Malooly says the Catholic Diocese of Wilmington’s proposed bankruptcy reorganization plan is fair to creditors, including victims of priest sex abuse.

The plan includes a $77 million settlement with some 150 alleged abuse victims, and a requirement that church officials turn over internal documents detailing how the diocese handled pedophile priests, who in many instances were allowed to continue to prey on children for years after their abuse became known.

Malooly was the first witness to testify at a hearing Friday on whether the court should approve the plan, which would release church officials from future legal claims involving the priest sex abuse scandal.

The diocese sought bankruptcy protection in 2009 on the eve of a series of trials in lawsuits filed by alleged victims of priest abuse.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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