Del. Diocese Strikes $77.4M Deal To Escape Ch. 11

Law360, New York (February 3, 2011, 5:49 PM EST) -- The Catholic Diocese of Wilmington Inc. has cleared a path out of Chapter 11 by agreeing to a $77.4 million settlement with the alleged victims of sexual abuse whose lawsuits drove the religious body into bankruptcy.

The diocese and its creditors reached an agreement in principle on Wednesday to set up a trust to distribute the funds to abuse survivors, said Robert S. Brady of Young Conaway Stargatt & Taylor, an attorney for the diocese, at a hearing in the U.S. Bankruptcy Court for the District...
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