Bankrupt Albany Diocese’s Creditors Aim to Restart Pension Suit

Some creditors of the Roman Catholic Diocese of Albany asked a court to lift the church’s bankruptcy protection from litigation so that they can continue a lawsuit to determine how much they’re owed in their pensions.

About 1,100 former employees of formerly church-owned, defunct St. Clare’s Hospital claim they received reduced or no pensions because the diocese failed to fully fund them. They say they’re owed about $70 million.

Lifting the bankruptcy stay would allow the litigation to proceed in state court, a group of the unsecured creditors said in its motion filed with the US Bankruptcy Court of the ...