On March 1, 2021, the Boy Scouts of America (BSA) filed an amended Plan of Reorganization with the Bankruptcy Court, a critical step toward emergence from Chapter 11. The amended Plan outlines the BSA’s proposed strategy to provide equitable compensation to survivors and address its other financial obligations so the organization can continue to serve youth for years to come.
While details of the Plan are not final, aspects of the amended plan include:
- A 5-year business plan that demonstrates a sustainable model for continuing Scouting’s vital mission into the future and provides for the BSA to continue to fund its pension and benefit plans for employees and retirees.
- The channeling of all claims of past abuse against national BSA and local councils into a compensation Trust, which will allow the BSA to equitably compensate victims and continue to serve youth across the country into the future.
- A national BSA contribution to the Trust that includes a significant portion of national BSA’s unrestricted, non-core assets that are not subject to liens of its secured lender.
- A loan from the National Boy Scouts of America Foundation to the BSA to provide the BSA with sufficient working capital to operate after making the contribution to the Trust.
- A contribution of at least $300 million from local councils to the Trust.
The organization expects to file supplements to the Plan in the coming months that will include a more detailed breakdown of the process to compensate survivors and more details about how local councils will support this effort.
The Plan includes agreements with two key constituents—our secured lender and the Official Committee of Unsecured Creditors. The BSA, abuse survivors, insurers, and others important parties in the case continue to refine certain aspects of the Plan in ongoing mediation, but the amended Plan is an important step in demonstrating progress that the organization believes will lead to a final plan that the Bankruptcy Court will confirm.
Ultimately, claimants will have the opportunity to vote on the Plan. The BSA is hopeful that it can come to a resolution that is in the best interest of survivors and all parties and emerge from Chapter 11 this fall.