Diocese Ch. 11 Plan Includes $77M Sex Abuse Settlement

Law360, New York (April 20, 2011, 4:53 PM EDT) -- The Catholic Diocese of Wilmington Inc. on Tuesday filed a restructuring plan built around a $77.4 million settlement with alleged victims of sexual abuse, but also included an option to exit Delaware bankruptcy court protection without approval of the deal.

The diocese warned in its disclosure statement, also filed Tuesday, that approval of a Chapter 11 plan without the settlement trust could cost survivors of church sexual abuse potentially millions of dollars. If 85 percent of sexual abuse survivors do not approve of a plan including...
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