Judge Clears Del. Diocese's Reorganization Plan

Law360, Wilmington (July 28, 2011, 4:27 PM EDT) -- The Catholic Diocese of Wilmington Inc. won confirmation of its reorganization plan in Delaware bankruptcy court on Thursday, clearing the church body to compensate victims of sexual abuse by diocese priests with $77.4 million while stabilizing its pension fund.

U.S. Bankruptcy Judge Christopher S. Sontchi signed off on the plan after the diocese and a committee representing abuse victims agreed on a provision barring the church body from giving financial aid to the disgraced priests.

The order caps off a bitter two-year stay in court protection...
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