Diocese of Wilmington, DE files for Chapter 11 bankruptcy

From the Associated Press:

A bankruptcy filing by the Catholic Diocese of Wilmington was the best way to ensure reconciliation and compensation for all victims of clergy sexual abuse in the diocese, the bishop said Monday.

The diocese filed for Chapter 11 bankruptcy protection late Sunday after hours of settlement negotiations failed with about a dozen alleged victims, including eight plaintiffs whose cases were scheduled for trial. More than 100 other alleged victims are pursuing compensation through dispute resolution instead of trials.

"It was clear to us in our negotiations that the amount of money that was being sought by the early victims and the finite amount that we had ... was not going to work," said the Most Rev. W. Francis Malooly, the bishop of the diocese.

... The Wilmington diocese, which serves about 230,000 Catholics in Delaware and the Eastern Shore of Maryland, is the seventh U.S. Catholic diocese to seek Chapter 11 bankruptcy protection since the church abuse scandal erupted seven years ago in Boston.

Others are Davenport, Iowa; Fairbanks, Alaska; Portland, Ore.; San Diego; Spokane, Wash.; and Tucson, Ariz. The San Diego case was dismissed.