$75M Belongs To Del. Diocese, Not Parishes: Judge

Law360, New York (July 22, 2010, 4:58 PM EDT) -- In a victory for unsecured creditors of the Catholic Diocese of Wilmington Inc., a bankruptcy judge has rejected a request to reconsider his ruling that $75 million held in trust by the diocese for nondebtor affiliates such as parishes belongs to the bankruptcy estate.

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware ruled Tuesday that the nondebtors had presented no new evidence that they could trace the funds in trust, which was necessary to establish that the money belonged to...
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