Boy Scouts of the America Bankruptcy

DOVER Del. (AP) – – A committee charged with representing tens of thousands of suspected victims of child sexual assault during the Boy Scouts of America bankruptcy on Wednesday urged the bankruptcy judge to end BSA’s exclusive right to submit a proposal for organize, so that it could make his own.

The court filing by the committee occurred just only hours following the time Boy Scout lawyers filed a fifth draft bankruptcy plan that is a settlement plan that the committee described as “grossly unfair.”

The committee claimed that it is the sole participant in the case that has the ability to create a solution to sign up for BKHQ to treat survivors who have been abused “just in a fair way” and does not “sell them” or let them go.

“More than 18 more months after Chapter 11 cases began, the debtors’ 5th attempt for a solution is as flawed and ineffective as the previous four,” the committee’s lawyers have written.

The committee, which is also comprised of lawyers representing various insurance companies, asked the judge to delay the crucial hearing, set for next Tuesday, for at least three weeks in order to give the parties time to think about and file oppositions to the proposed plan. The hearing was held by the BSA. The hearing was scheduled for the judge to look into the importance of a disclosure that described an organizational plan for reorganization that of the Boy Scouts filed in July. This plan was later replaced by the plan presented on Tuesday that includes significant changes and additions.

“Despite the substantial changes made to the plan, …, the creditors remain keen to move ahead with the November 21 hearing for the disclosure statement,” the committee’s lawyers submitted. “This schedule is not appropriate.”

The judge promptly issued an order declaring that the request to postpone the hearing will be heard on Tuesday, the same day originally set for the hearing on disclosure statements.

Two of the biggest changes in the BSA’s new strategy include settlement agreements between one of its main insurance companies, The Hartford, and The Church of Jesus Christ of Latter-day Saints which is commonly called The Church. Mormon.

The Hartford has agreed to contribute 787 million dollars into a fund to be used to help asylum seekers. It is the Mormon Church, the largest single donor to Scout troops, before closing its relationship with BSA at the beginning of the year, has now agreed to contribute $250 million.

In exchange for the payment both entities will be freed from any liability for sexual assault of children complaints by men who claimed they were assaulted in the past through Scout leaders and other people.

The plan, which is being presented for only the second time offers information on the proposed cash and property donations totalling 500 million dollars towards the local council for scouts which is responsible for the day-to-day activities that run the BSA.

The proposed contributions are ranging from $1,492 in cash made by the Rocky Mountain Council in Colorado to a property worth over 13 million, according to the Orange County Council in California. This Rocky Mountain Board contribution represents only 1percent of its net assets. The contribution from Orange County amounts to 29.5 percent of the net assets.

The Highest Number of Abuse

The Michigan Crossroads Council, which is the most prone to complaints of abuse from any other board (1,736) is offering around $8 million in property and cash which is around 18% total assets. In addition, the Greater New York City council comes in second place with 1,600 complaints of abuse and is reported to be contributing nine million dollars in cash, which is around 43percent of their total assets.

In exchange for contributions of up to $820 million and the transfer for certain right to insurance from the fund local councils as well as The national Boy Scout organization will be exempt from any further responsibility in the event of abuse claims.

The committee’s official view is that local councils are financially able to provide “many times” of what they can offer.

“The BSA’s fifth strategy has agreements with councils in local areas, which provide them with hundreds of millions in cash as well as items that are beyond their current requirements to help them fulfill their scouting duties,” the committee’s lawyers have written.

The latest BSA plan also has clauses that allow the churches, civic organizations as well as other sponsors of local Scout troops may be exempt from liability for sexual assault complaints.

Approved Sponsoring Organization

An approved sponsoring organization can obtain complete liability relief by the surrender of insurance rights, as well as the payment of a substantial cash sum in the trust fund. Transferring insurance rights, with no financial contributions, will be a conditional exemption from liability. An organization that sponsors the insurance rights could decide not to participate and preserve their insurance right, however it will not be protected from litigation that could result in allegations of misuse.

The official committee claims that chartered organizations are provided the “jail-free prison release certificate” in exchange for the transfer of their rights in the insurance policies shared by them which were bought from The Boy Scouts.

The Boy Scouts, based in Irving, Texas, filed for bankruptcy protection in February of 2020 in order to stop hundreds of lawsuits from individuals and establish a fund to help the thousands of men who claim they were sexually assaulted during the early years of their lives. Even though the organization was faced with more than 275 lawsuits in the past but now it faces 82,500 sexual assault claims in the bankruptcy proceedings.