On June 8, Judge Laurie Selber Silverstein granted an extension of the preliminary injunction order, which bars the litigation of abuse lawsuits against local councils and chartered organizations nationwide through November 16, subject to further extensions. November 16 is also the deadline for the submission of claims in the BSA’s bankruptcy case. While new abuse cases may still be filed during this time, those cases will be immediately stayed (or paused) under the terms of the preliminary injunction. The extension of the preliminary injunction through November 16 is the result of extensive good-faith negotiations among BSA, the Official Committee of Tort Claimants, the Official Committee of Unsecured Creditors, and the Ad Hoc Committee of Local Councils of the Boy Scouts of America. As a condition to the extension, local councils will agree to certain reporting with respect to their real estate and personal property.
In addition, Judge Silverstein agreed to appoint three mediators to assist the BSA and its stakeholders, including abuse survivors, insurers, and others important parties in the case, as they work to resolve complex issues in connection with BSA’s chapter 11 plan of reorganization. The Court-appointed mediators are retired Delaware bankruptcy judge Kevin Carey, Paul Finn, a mediator with expertise in resolving sexual abuse claims, and Timothy Gallagher, a mediator with expertise resolving insurance disputes.
With the injunction remaining in place and mediators appointed, BSA continues to focus on developing a global settlement of abuse claims through a consensual plan of reorganization.