Tuesday, June 29, 2010

Judge Says Pooled Investments Part Of Assets

Jun 28, 2010 7:11 pm US/Eastern

Judge Says Pooled Investments Part Of Assets
RANDALL CHASE, Associated Press Writer
DOVER, Del. (AP) ― A Delaware bankruptcy judge says creditors in the Catholic Diocese of Wilmington's bankruptcy can try to lay claim to assets of certain parishes held by the diocese.

In a 44-page ruling Monday, the judge said funds held in trust by the diocese on behalf of the parishes are commingled with the diocese's own non-trust funds and unable to be traced.

As a result, the judge says all the funds in the pooled investment program will be considered part of the diocese's bankruptcy estate.

The ruling means the diocese's creditors committee, consisting of alleged survivors of priest sex abuse, can go after the entire $120 million in the pooled account, not just the diocese's $45 million.

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