First hearing to be held in bankruptcy filing by Delaware Catholic diocese

Hearing scheduled in Del. diocese bankruptcy

WILMINGTON, Del. — A status hearing is scheduled in the Catholic Diocese of Wilmington’s bankruptcy, which was filed just before a trial on alleged sex abuse could begin.

The Delaware diocese filed for Chapter 11 protection Sunday after negotiations with alleged victims of priest sexual abuse broke down on the eve of what was to be the first of eight trials.

The lawsuits were automatically put on hold by the bankruptcy, but the court will hold a status conference Wednesday on a request by attorneys for James Sheehan, an alleged victim who is seriously ill, to allow his November trial to proceed.

Meanwhile, the diocese is asking that the automatic halt on litigation be applied to parishes and other co-defendants in the lawsuits, even though they aren’t part of the bankruptcy.