This week, the Boy Scouts of America (BSA) filed a further amended proposed Plan of Reorganization with the Bankruptcy Court. This plan reaffirms our commitment to equitably compensate survivors and ensure the future of Scouting by moving forward as one Scouting Movement toward a global resolution of past abuse claims.
- Under the Plan, national BSA will contribute to the Trust a significant portion of its remaining unrestricted, non-core assets, that are not subject to liens of its secured lender, for a national BSA contribution totaling approximately $115 million plus significant insurance rights.
- This Plan includes a significant increase in proposed contributions from local councils totaling a minimum of $425 million plus local councils’ significant independent insurance rights.
The filing reaffirms the BSA’s commitment to a global resolution of abuse claims against the BSA, local councils, contributing chartered organizations, and insurers. However, the considerable financial costs associated with the bankruptcy process have made it necessary for the BSA to be prepared to follow another avenue, if necessary, to emerge from bankruptcy on its required timeline.
- We are continuing to work hard to create a Trust for survivors that will be funded with a significant portion of the BSA’s remaining unrestricted assets and contributions from local councils, chartered organizations and insurers. If all parties cannot align moving forward, however, the national organization will pursue an alternate Plan of Reorganization that does not include local councils or other non-debtor parties.
- Put simply, it would be a National BSA-Only Plan of Reorganization.
- In this contingency scenario, local councils and chartered organizations would no longer benefit from the stay – or pause – on abuse lawsuits that has been implemented as part of the bankruptcy proceedings, and victims of past abuse in Scouting would retain their rights to file lawsuits against local councils and chartered organizations in the tort system.
A national BSA-Only Plan is not our preferred pathway forward, and we will continue to negotiate with our constituents in good faith through the mediation process in an effort to come to a global resolution of abuse claims that will move this case forward. This is an important reminder that it is in the best interest of all parties that together we find a path to a global resolution.
The BSA is wholeheartedly committed to continuing its work with survivors, local councils, insurers, and other parties in the case in ongoing intensive mediation and believes there are reasonable prospects for achieving a global resolution through the BSA’s proposed Plan of Reorganization. The BSA looks forward to sharing an update with the Court at the next omnibus hearing on April 15 regarding the amended Plan and the active ongoing mediation efforts.