Tuesday, November 03, 2009

Bankruptcy Court Says Bishop Need Not Appear At Chpater 11 Creditors Meeting

The federal Bankruptcy Code provides that when a debtor is going through a Chapter 11 reorganization, the U.S. trustee is to convene a meeting of creditors where the trustee and creditors may question the debtor under oath. (Background.) In the pending Chapter 11 bankruptcy of the Catholic Diocese of Wilmington (see prior posting), the diocese designated its vicar general of administration, the Rev. Monsignor Thomas Cini, as the person to attend and answer questions. However, according to yesterday's South Jersey Courrier Post, victims of sexual abuse who have claims against the diocese wanted Bishop W. Francis Malooly to appear instead. An attorney for the victims said: "The goals of the debtor for transparency, for healing, for atoning, if you will, for what happened to these people requires that this person show up." Judge Christopher Sontchi however agreed that it would make more sense for Cinci to appear, since he knows more about the situation. Malooly has been with the diocese for only about a year, and there are no allegations of wrongdoing against him.