Eagle1993

I doubt it. BSA only would mean a few hundred million in the trust vs billions. Now could it be where only some LCs and COs are covered ... Sure. It may go that way, but probably only as part of a cramdown. BSA had said they would have an update on the docket last week. As of this morning... Silence. Today is the day the TCC must submit their objection. So, I think expect we will see something from the BSA today (plus the hearing is Friday). My only thought is that they are working through the US Trustee's objections be to see what they can address in the update.

BSA entered bankruptcy in order to ensure it can survive long term while addressing debts that exceed their ability to pay. That is why any organization would enter bankruptcy. I agree there is a chance BSA wasted a ton of money on legal fees. As of the end of December they spent $150M on this case. If they are not able to get the nondebtor releases, that is in part due to timing (Purdue pharma came in late), in part due to the loose nature of the laws, in part due to their legal team (perhaps) and in part due to the Judge. I think there will be plenty of blame to go around. I am somewhat hopeful that they will find a path out soon that will satisfy most parties. Unfortunately, they can never undo the damage that was done to far too many youth and I feel terrible that anyone went through those ordeals.

The Guam objection was interesting as one of the rules is basically you need the non debtors to be included in the plan as it is critical to the bankruptcy exit plan. They pointed out that the BSA already created a toggle plan that shows they can emerge without any non debtors included so it is not critical and therefore why are non debtors even here? While the TCC may settle, there are many groups with very strong state cases against COs and in some cases LCs. I don't see them accepting anything that allows non debtors to be included (unless they give a ton of money and it is directed to them). They seem to have strong arguments. I'll be interested to see if the updated BSA plan addresses their concerns.

The US Trustee opened up their objection with a statement that they know this is complex and a difficult situation. They know everyone was working hard on a resolution including debtors and insurance companies. However, they need to object. It reminded me a bit of the ending of Old Yeller ... it was their responsibility to recommend stopping the plan. After reading most of the obection. Overall the DOJ/US Trustee states: Non Debtor releases not allowed by constitution Non debtor releases only allowed for asbestos in bankruptcy law (if they wanted them for other groups, Congress had 27 years to update bankruptcy code) Even if non debtor releases are allowed (they are not) the plan does not comply to the rules set for non debtor releases. For example, most COs contributed $0 and councils are protected even if they gave low amounts to the fund. Many more issues listed here. This isn't a settlement as parties must agree to a settlement and parties do not agree. The releases are too broad and protect too many groups, individuals with too many protections. You cannot pay the Coalition ... stop. Yes, the BSA is a non profit, but it must comply with this section of bankruptcy code. This means they have to show the Ch 7 path vs Ch 11 and they didn't do that correctly. The 1st three are clearly the big question in this bankruptcy. I don't see the coalition fees going forward, so that should be a non issue. The last point could be major and may be why the BSA is now claiming claimants are paid in full. As a non lawyer, many points went above my head so I glanced through some of those sections.

Agreed. The will probably dump a placeholder like Zuckerman just in case.

In Zukerman's objection they state the BSA gave email permission to submit objections until Feb 7 at 4pm. They also state the TCC has been given permission to submit their objection as late as Feb 9. They said the delay is due to updates to the plan that should capture more claimants including possibly the TCC. Zuckerman isn't included in mediation so they said they have no idea what the changes are and put in the objection as a placeholder.

Ah ... clarity. The deadline was extended now until Feb 7 at 4PM for some parties. TCC was granted an extension until Feb 9th.

DOJ raising 5th amendment concerns in addition to those that have been previously brought up. Said the plan is unconfirmable and the judge needs to reject it.

Ok, now I am confused. I thought objections were due the 4th. Microsoft Word - 2022-02-07 ZS Claimants Objection to BSA Plan.DOCX (omniagentsolutions.com) Zuckerman now objects ... that is a big one, 1,780 claimants.

More details from the Guam objectors from a specific law firm. c86cabc6-3501-4653-aea5-9892d2260ed3_8708.pdf (omniagentsolutions.com) 72 of the 73 voted against the plan. Their issue isn't national. Their concern is the release of non debtors. I found their objection interesting as it uses the BSA, LDS, Roman Catholic Church and other's statements that the toggle plan is feasible. This objection was pretty clear and I struggle to see, under the current plan, how it could be ignored. TCC indicated that the current plan isn't legal due to its releases. I'll be interested to see how those change. Now we have the updated DOJ objection. 987f6a0f-1219-4878-b63e-817da6c58f3b_8710.pdf (omniagentsolutions.com)

Quick update on schedule Dec 29 Deadline to serve discovery on voting, settlements Jan 4 Preliminary voting report Jan 5 Rebuttal expert reports due Jan 7 Deadline to serve responses/objections to voting/settlement discovery Jan 14 Document production regarding voting/settlement due Jan 17 Final voting report deadline Jan 28 Deposition of expert witness & fact witnesses due Jan 31 Deadline to identify trial witnesses Feb 4 Plan objection deadline Feb 10 Deadline to exchange depositions designations and file motions Feb 11 Status Hearing (added recently) Feb 14 Confirmation brief/plan reply deadline Feb 15 Deadline to exchange deposition couter-designations Feb 17 Deadline to submit joint pretial order, witness/exhibit lists, options to motions, etc Feb 18 Final pretrial conference Feb 22 Confirmation hearing (will likely take into early March)

Do I think the end of the bankruptcy will go beyond February 2024? While the trust will definitely still be open (per plan I think it goes until 2036 or so), and large payments may not be paid by then ... BSA will likely have emerged. I'm not 100% sure, but with TCC & likely other major law firms talking it sound like we may have a plan that can go through confirmation. Yes, the courts can definitely disrupt this ... but I still don't see it take until beyond Feb 2024 for BSA to exit. I do think there is still chances for major setbacks. For example, I would not be surprised to see the DOJ push back on any attempt to confirm a plan without sending it out for a revote. Perhaps the judge disagrees but district court agrees. Then you are talking perhaps May timing when the case comes back to bankruptcy and another 4 months or so for vote, tally, etc. Even assuming everything goes smoothly, that 1 issue could push the bankruptcy back until October 2022. Now what happens if district court rejects CO coverage ... that is a much bigger deal and could push this thing into 2023. I just struggle to see paths to get this all the way to 2024, but I'm sure they exist.

I think we may see a split in survivors. Those with strong cases (or the abuse was already front & center in their life) and good law firms ready to go after LCs and COs in state court vs those who, like you, are ready to be done and are ready to move on. How the courts/plan balances those groups will be interesting.

So, objections filed by the following: Endurance American Insurance company, Endurance American Specialty Insurance Company, Trader & Pacific Insurance Company, Travelers Casualty and Surety Company, St. Paul Surplus Line Insurance Company, Gulf Insurance Company, Allianz Insurers, Liberty Mutual Insurance Company, AIG, Munich Reinsurance American, Inc., Markel Insurers, Everest National Insurance Company, Claimant I.G. Norwich Roman Catholic Diocesan Corp, Roman Catholic Ad Hoc Committee, Archbishop of Agana Guam Committee Eric Pai Girl Scouts of America Parker Waichman LLP (354 abuse claims holders) AT&T Corp Jane Doe Claimant M.C. Oracle Now many other groups can still stop the current plan (for example, the DOJ does not support it and is likely relying on its objection from months ago). So, I take the list above as the groups that may be most concerned on even the upcoming plan (or perhaps were left out of discussions). 1) Roman Catholic Church seems very concerned as to where the current plan is and doesn't seem content with where the plan is going. 2) Many insurance companies have concerns. Century, Hartford and a few others who have deals in the current plan... I wonder if those hold in the new plan or if we may see them object if the plans change. In general, non settled insurance companies appear concerned. 3) Some individual claimants. Now, these are pretty small groups, so perhaps they do not know the upcoming plan details. 4) Misc. entities (AT&T & Oracle just have disagreements on outstanding debts). GSUSA ... ugh.

Note that none of these should be surprises. There will be many objections. I'll be watching for TCC, DOJ and Zalkin ... those were the big groups holding back support. The GSUSA objection is garbage (technical term). They are owed nothing. I'm sorry, but asking for millions of dollars because BSA let in girls ... come on. Even the district judge overseeing their lawsuit is about ready to throw it out. They should get nothing.

Objections: Girl Scouts of America 36057865-57ec-4d7c-b736-b8a5499747e8_8679.pdf (omniagentsolutions.com) Jarred Pai Estate Microsoft Word - Confirmation Objection.New (002).docx (omniagentsolutions.com) Waichman Lawfirm (354 claimants) cd84befd-c5be-4563-96f9-4cc1e5da73af_8676.pdf (omniagentsolutions.com) AT&T 70a1785a-81b0-46bb-a068-861d27ed5c58_8675.pdf (omniagentsolutions.com) Everest Insurance Company e4877259-c67e-4843-a7e8-a041440ce92d_8672.pdf (omniagentsolutions.com) Note that hearing has now pushed out to Feb 11.

Objections coming in. 72f3eb09-44db-46d5-870b-3137e3e48f42_8674.pdf (omniagentsolutions.com) This one was a clear summary of an objection by a Jane Doe. Jane was an explorer scout who was sexually abused in 2013. Prior to bankruptcy, Jane sued the BSA, Town of Trumbull and certain individuals. Now, with this bankruptcy, the Town of Trumbull will be covered (and I don't think they paid a dime). I think this is where the plan gets really tricky. While the case can proceed against the PO (and it is) she can no longer sue certain individuals, or the Town given the current releases. A very valid point ... how is a protecting a Town critical to BSA's survival? This objection is well written and really gets to the heart of questioning the releases for COs. I expect we will see other individual cases that blow holes in the Chartered Org protections. This is a risk going forward even in district court. I expect LCs are probably safer ... the CO releases are the ones I think are at most risk.

I found that National is dictating the board of LCs. The size, members, etc. Now, how much that actually changes each board, I have no clue. Before, it was up to local councils on the size and composition of their board. The bolded language below is new... They eliminated the local council chair cabinet ... not sure if this exists today, but that is gone so at minimal it was a proposal that was rejected.

15dbaff5-5871-4ffd-a73c-0395915da442_8647.pdf (omniagentsolutions.com) Amended plan ... new BSA bylaws listed. They reduced their board to no more than 64. Reduced executive board to 40. Reduced term to 1 year. A lot of changes to the relationship between National and councils in terms. They are also indicating the size of council boards. ... I recommend reading the blackline if interested in this.

Dietrich Knauth on Twitter: "A Delaware judge has allowed non-debtor releases in Mallinckrodt's bankruptcy, overruling Rhode Island's attempt to sue the company's CEO for allegedly negligent oversight of opioid sales." / Twitter This is big. Now the third circuit district court is going to see a bankruptcy with non consensual non-debtor releases. One key here is that the only objector, Rhode Island, represented only $1M of a $5B settlement. The bankruptcy judge indicated that he believes the value of the claims who object matters. In any case ... it may be a chance to see a 3rd circuit court decision before BSA's plan is confirmed.

Quick update from TCC. Tomorrow is the deadline for plan objections ... don't be surprised if the TCC doesn't file any. Mediation is going well per TCC. (They already have prior objections they can likely use). There is movement on all three of their pillars (money, youth protection and leadership of the trust). No specifics. Doug Kennedy has taken the lead on youth protection and BSA is listening. "1000s" of documents are being exchanged during mediation. They said if they don't get the money they believe that is needed, they are also working to cut costs of the trust. Everyone is being respectful to each other. Their hope was that if the vote didn't hit 75% they would see mediation ... that is what happened. Watch for a TCC meeting in the future. Sounds like it could be short notice if something comes up. This + the scheduled status hearing really makes me think there is a new plan coming with TCC buy in.

Court just scheduled a status hearing for Feb 9. 020322 Notice of Status Conference Feb. 9 (omniagentsolutions.com)

There is a chance this may be interesting. Earlier this week, a joint statement was read in court that significant progress has been made by all mediation partners and to expect an update late this week. While TCC cannot be specific about anything (unless it hits the docket before their meeting) you may get some clues as to status of the discussions. This is their first townhall in a month. I believe the last Coalition update was the day the vote results came out. Again, don't expect details, but you may get their opinion on where this is headed. The TCC will be returning to a schedule of Town Halls on the first Thursday of each month. The next regular Town Hall of the Official Committee of Tort Claimants' (the “TCC”) in the Boy Scouts of America bankruptcy cases will be held on Thursday, February 3, 2022, 8 pm (Eastern). Please note, the TCC is actively engaged in all facets of this bankruptcy and wants to keep Survivors abreast of significant updates. PLEASE check this website to learn of any Town Halls that are scheduled before the first Thursday of the month. Zoom link: https://pszjlaw.zoom.us/j/82272826295 (no registration required) or by phone: 888-788-0099 (toll free), Webinar ID: 822 7282 6295

That number was mentioned by an insurance company lawyer Tuesday this week. It was in relation to the request from the Roman Catholic Church to the insurance company to describe how the settlement impacts Chartered Org insurance policies. I don't think there is any way 40,000 or 100,000 would be sued ... just that to look at all of that insurance is impossible.