Vermont diocese seeks to withdraw bankruptcy filing, citing legal costs, lack of progress

The Diocese of Burlington has moved to withdraw its bankruptcy filing, which was originally initiated two years ago to address sexual abuse claims. Bishop John McDermott cited a lack of progress in the case, rising legal fees, and a recent move by the creditors’ committee to include parishes and schools in the settlement as reasons for the motion.

In a statement released Sept. 30, Bishop McDermott noted that diocesan legal and administrative expenses in the proceedings have exceeded $2 million, while no funds have been awarded to claimants so far. He expressed disappointment that the Chapter 11 process has not reached a resolution and apologized to claimants for any additional distress the withdrawal might cause.

The bishop stated that the diocese made a good faith effort to resolve the matter in a timely manner, but its best offer was not accepted. A hearing regarding the motion to withdraw the filing is scheduled for Dec. 8.