Published • loading... • Updated
Burlington Diocese Seeks Exit From Chapter 11 Bankruptcy
Bishop John McDermott said the process has cost millions in legal fees and still has not paid survivors.
- On Wednesday, the Roman Catholic Diocese of Burlington filed a motion to exit Chapter 11 bankruptcy, citing two years of mounting legal costs and failed negotiations. Bishop John McDermott seeks a hearing near the end of 2026.
- The two-year reorganization process has cost $2 million in legal fees without providing compensation to survivors. McDermott stated the diocese cannot afford further expenses while negotiations remain stalled.
- Creditors and abuse claimants, including Daniel Stack, opposed the motion, citing a separate lawsuit seeking access to an estimated $500 million in parish assets. Stack criticized the withdrawal as a "second attempt to avoid accountability."
- Burlington-Based Judge Heather Cooper set a December 8 hearing on the motion, which threatens to revive sidelined abuse lawsuits and initiate individual civil trials. Rice Memorial High School remains subject to a separate property sale dispute.
- Vermont's diocese is one of 44 U.S. Catholic entities to seek Chapter 11 protection since 2002. Ending the bankruptcy proceedings without agreement will not resolve the diocese's financial challenges amid significant abuse claims dating back decades.
Insights by Ground AI
14 Articles
14 Articles
In a surprise move, Vermont’s Roman Catholic Diocese seeks to dismiss its 2-year-old bankruptcy case – WTOP News
Vermont’s Roman Catholic Diocese is marking this week’s second anniversary of its request for a Chapter 11 financial reorganization plan by asking a U.S. Bankruptcy Court judge to dismiss its case, which so far has cost $2 million in legal fees “with no end in sight,” church lawyers said. The state’s largest religious denomination had...
·Chevy Chase, United States
Read Full Article
The Toronto Star+6 Reposted by 6 other sources
In a surprise move, Vermont’s Roman Catholic Diocese seeks to dismiss its 2-year-old bankruptcy case
Vermont’s Roman Catholic Diocese is marking this week’s second anniversary of its request for a Chapter 11 financial reorganization plan by asking a U.S. Bankruptcy Court judge to dismiss its case, which so far has cost $2 million in legal…
·Toronto, Canada
Read Full Article
Coverage Details
Total News Sources14
Leaning Left3Leaning Right1Center8Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 25%
C 67%
Factuality
To view factuality data please Upgrade to Premium
