Rockville Center Diocese Wants to End Bankruptcy Without Sex Abuse Deal

A Catholic diocese in Long Island, New York has asked a judge to end its Chapter 11 bankruptcy, after failing to get support from about 530 sex abuse survivors on a proposed $200 million settlement of their claims against the diocese.
The Roman Catholic Diocese of Rockville Centre, New York, which serves about 1.2 million Catholics in Nassau and Suffolk counties, said on Friday that its bankruptcy had “run its course” after abuse survivors “overwhelmingly” voted against the diocese’s offer.

“The Diocese sincerely hoped that its offer of $200 million—in addition to very substantial insurance assets—would be accepted by the creditors,” the diocese wrote in a motion to dismiss filed in U.S. bankruptcy court in Manhattan.
James Stang, an attorney representing abuse survivors in the bankruptcy, said that the diocese’s failure to reach a deal was “unprecedented.”

In other Catholic bankruptcies, abuse survivors were allowed to propose their own bankruptcy settlement instead of being offered a binary choice between the diocese’s plan or nothing, Stang said.

Continue reading at Reuters

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