A federal judge on Wednesday denied a motion by the Diocese of Rockville Centre to dismiss its bankruptcy case and appointed two high-powered mediators in an effort to break a 3½-year logjam of negotiations involving clergy sex abuse survivors.
U.S. Bankruptcy Court Chief Judge Martin Glenn, expressing his irritation at the case remaining unresolved, issued the ruling after some survivors spoke in court of the pain they have endured and their frustration after more than $100 million in legal fees have been paid to attorneys but nothing to them.
Glenn said he was appointing retired U.S. Bankruptcy Court Judge Shelley Chapman and Paul Finn, a lawyer with deep experience in resolving sexual abuse claims, to try to get the diocese and lawyers for the survivors to reach an agreement. As a judge, Chapman oversaw the 2008 Lehman Brothers Holdings bankruptcy case — the largest bankruptcy case in U.S. history — and other Chapter 11 mega-cases.
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