Thursday, October 22, 2009

First hearing held in Del. diocese bankruptcy

First hearing held in Del. diocese bankruptcy

WILMINGTON, Del. -- A bankruptcy judge has granted first-day motions in the Catholic Diocese of Wilmington's bankruptcy.

The diocese filed for bankruptcy Sunday on the eve of what was to be the first of eight trials in lawsuits brought by alleged victims of priest sexual abuse.

The judge on Wednesday approved the diocese's request to use its existing cash management system and to pay employee wages and benefits.

The judge also scheduled a Nov. 2 hearing on several matters, including a request by attorneys for one alleged victim who is seriously ill to allow his scheduled November trial to proceed.

The judge also will consider the diocese's request for a restraining order to prevent the plaintiffs from continuing their lawsuits against the diocese's co-defendants.

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