Judge refuses to approve diocese reorganization

July 14, 2011 7:06:25 PM PDT
A Delaware bankruptcy judge is refusing to approve the Catholic Diocese of Wilmington's reorganization plan because it allows for the possibility of payments to pedophile priests.

The judge's ruling Thursday came after he heard arguments on the fact that the plan doesn't prevent the diocese from making what the Church calls "sustenance" payments to priests identified by the diocese itself as child abusers.

The judge said that in asking him to approve a plan that impairs abuse survivors while not impairing the abusers, the diocese had not proposed a plan in good faith.

The judge agreed to resume the hearing on July 28 to give attorneys time to consider the impact of his rulings.