Del. Diocese Creditors Argue For 'Reverse Veil-Piercing'

Law360, New York (November 10, 2010, 7:36 PM EST) -- Unsecured creditors in the Catholic Diocese of Wilmington bankruptcy on Wednesday defended their suit seeking to ”pierce the corporate veil” between the diocese and its parishes, saying the case could not be dismissed before they conducted discovery to prove the entities functioned as a single enterprise.

At a hearing on the defendants’ motion for summary judgment in the U.S. Bankruptcy Court for the District of Delaware, the official committee of unsecured creditors argued that the parishes and other affiliated entities operated as “alter egos” of the...
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