Del. Diocese To Bar Payments To Abusive Priests

Law360, Wilmington (July 27, 2011, 8:04 PM EDT) -- The Catholic Diocese of Wilmington Inc. said Wednesday that it had addressed various objections that led a Delaware bankruptcy judge to refuse confirmation of its proposed reorganization plan, including one over possibly providing financial aid to sexually abusive priests.

The diocese will return to court to again seek confirmation of the plan, but this time on a consensual basis, attorneys for the diocese and other parties said at a court-ordered status conference Wednesday.

The diocese, which was forced into bankruptcy in 2009 by a flood of...
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