In a significant development in the ongoing bankruptcy case of the Vermont Roman Catholic Diocese, a federal trustee has appointed five abuse claimants to represent creditors in the reorganization process. These claimants, who have unresolved priest misconduct lawsuits against the diocese, will serve on the Official Committee of Unsecured Creditors. The committee’s role is crucial as it will work with the court and the diocese to develop a reorganization plan that addresses the financial assets and liabilities of the diocese.
The appointment of the committee members was welcomed by Judge Heather Cooper, who also allowed the diocese to maintain its current staff and operations until a final ruling is issued in December. The Vermont diocese, facing a decline in membership and ongoing legal challenges related to abuse scandals dating back to 1950, hopes that filing for Chapter 11 bankruptcy will help resolve these issues.
The reorganization plan put forth by the diocese aims to address only its administrative office and not the various local entities it oversees, such as parishes, schools, and care homes. Bishop John McDermott acknowledged the challenges faced by the diocese, emphasizing the need to rely on the grace of God as they navigate the difficult road ahead.
With the appointment of the committee representing creditors, the Vermont Catholic Diocese takes a step closer towards addressing its financial woes and resolving the legal claims brought against it by abuse claimants.
Source
Photo credit vtdigger.org