Eagle1993

My understanding is the TCC plan would be a council by council settlement. So, if you are in council Z ... TCC would say pay $YM and the sex abuse liabilities prior to Feb 2020 goes away. If the council doesn't pay, then there would be no protection and lawsuits can begin. I think the benefit is that it really allows each council to individually decide. Risk lawsuits, future lawsuits, future disruptions and future bankruptcy or pay a high fee right now. I think that makes a lot more sense and may be easier to discuss with volunteers. The downside is that the payout is likely to be much higher than what they are contributing to the $450M settlement. What is being proposed now likely won't pass. Sure, if it could pass it will likely be better than the TCC proposal (in terms of council payouts).

I wasn’t on the call, so it’s tough for me to know. He quotes keep bringing up her desire to save the BSA. (I don’t think any judge would want on their record the elimination of one of the largest youth organizations in the USA.) She also wants victims to be compensated fairly. Right now, no plan does both. I would be fine seeing the TCC plan ... perhaps that is her decision. I know she is hoping for a negotiation, I just don’t see that happening until she makes some rulings.

We are a bit of a mixed state. No look back window. Some are pushing, but the leaders who previously support d reforms are not answering questions. The Catholic Church is fighting hard against changes as are private schools. Council has two camps, one worth $2M and one worth $1.5M along with a scout shop in the $1M range. I expect a camp will be sold even though listed as restricted. NDAs. They said the leadership signed NDAs which means they can only share what is public info. They did say the $450M is not equally spread across all councils and councils in better financial health (such as ours) are expected to pay more (there are other factors as well).

This is a copy of the judges final statement today.

During our council townhall, they indicated that our council will have to pay a sizable amount to the settlement. That yes, that is a change from the initial announcement. The contribution is going to be large, it will hurt, but we will still be able to survive. They cannot say the estimated amount at this time, but will when they are allowed. They cannot say if camp sale(s) will be required nor how that would be conducted. That they have a very good law firm that is working pro bono for our council. The council leadership is meeting multiple times a week. In 2020 ... our council ended in the black (barely) which is better than most councils. I was impressed they were open (as much as possible).

If she wants to fast track this, I really think she needs to simplify the bankruptcy. There is no way to fast track a resolution where most councils see limited number of in SOL cases and will be willing to give up the billion+ of assets. COs have not gotten involved and the insurance situation is complex. Add in the DOJ objection and I see no way a fast solution can come if you include councils. Perhaps she lets the global plan go to a vote, see it rejected and accepts the Toggle Plan (but stays the Hartford settlement and decision on HA bases). Those could be litigated after BSA exits bankruptcy. I don’t see another path if she holds to her word that she won’t let the BSA end as we know it.

https://www.reuters.com/business/legal/judge-frets-over-potential-end-boy-scouts-amid-chaotic-bankruptcy-2021-05-19/

One quote from the judge from today’s hearing. "To solicit a plan that has no abuse survivor support is not an attractive option. But neither is engaging in protracted litigation that has the potential to end the Boy Scouts as it currently exists."

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/e6463ebf-5761-47e7-9e21-2a9358c45549_3857.pdf No evidence ... however, I do believe Century requested Discovery from BSA and others.

Apparently they broke zoom. https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/f4390fd2-ca3c-457a-bff5-95afa2d61e1e_4686.pdf

Moved the discussion about BSA youth protection vs society and other programs here. Let me know if you need any comment moved back to the main CH11 thread. Thanks!

I'm going to quickly lock the thread and create a new topic. I think the discussion is valid and has been courteous ... but isn't directly linked to the bankruptcy discussion. Plus, we have 2 - 3 separate discussions going on here and it is a bit confusing. Will unlock shortly.

This thread has most of the info in this article. That said, some quotes from BSA including this one about Century Insurance. https://www.nbcdfw.com/news/business/details-on-local-council-finances-filed-in-boy-scouts-case/2635256/ Note that Century has accused the BSA of allowing thousands if not tens of thousands of false claims to remain on the books. Their belief is that BSA wants the false claims as those individuals are more likely to take the $1,500 payout and vote yes to their plan. Century said BSA is buying votes of false claimants. So, Century wants to pause this until the claims are vetted.

Well... LDS just served the BSA. This relationship has soured https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/1f0068a3-a7a6-468f-a9a7-9f64b80210e2_4659.pdf

Welcome to Scouter.com. The BSA would absolutely prefer the global resolution plan. It provides protection for their LCs and COs. The issue is that the claimants do not believe the offer is close to enough to give the liability waivers. Why would anyone vote for the toggle? Well, technically BSA is not even looking to get the toggle approved by claimants. They are asking the judge to enforce it through a cram down if the global plan is rejected. There are a lot of moving parts. Hopefully some come to a resolution tomorrow during the hearings.

If you look at National Only ... proceeds from liquidation would be $497M. Then liquidation fees (lawyers, wind down costs, etc.) would be $48M Secured claims (JPM + Pension Termination Claim) would be $337M Employee and professional claims would be $69M That results in $42M for everyone. BSA predicts Abuse claims would be $36.5M best case. If you look at Councils ... proceeds would be $1.8B (that assumes 0 sales of restricted land and a 60% return on unrestricted) ... essentially, that in a flash sale, you won't get much value. Asset Value is actually $4.0B for LCs. Then liquidation fees (lawyers, wind down costs, etc.) would be $210M Secured claims (JPM + Pension Termination Claim) would be $1.14B Employee and professional claims would be $11M That results in $445M for everyone. BSA predicts Abuse claims would be $405M best case. So, National is offering over $100M >> $36.5M if it were liquidated. Councils are offering $450M > $405M if they were liquidated. This is per BSA numbers. This also assumes >$1B goes to the Pension Fund ... which I know is being debated.

I expect the high adventure bases (and other restricted assets) could take years. Even after that initial trial November 17th ... there will be appeals. I do hope that after that trial, it may then allow a negotiated settlement afterward ... though parties may wait until after a round of appeals. I don't plan on knowing if the HA bases remain within BSA until the end of 2022. We have decided to not go to BSA HA bases in 2022 and 2023 given the risk. Note that I expect similar battles at councils. The most valuable camp in the entire BSA appears to be this gem.. https://alpinescoutcamp.org/ ... estimated to be worth $175M and is listed as restricted. I expect a battle.

More interesting tidbits. The BSA also included a possible liquidation analysis for 100% of local councils. Essentially, if the court agrees that all local councils would be liquidated if National must liquidate. The BSA is showing that essentially, the abuse claimants would get <$400M total between National and all LCs if the entire BSA was liquidated. That is their best case. So BSA is saying their current offer is better than what would be provided if the entire BSA is liquidated.

Some other interesting numbers from BSA's plan. Global Resolution estimate for # of youth members 2021 1,050,000 2022 994,000 2023 978,000 2024 984,000 2025 1,011,000 Toggle Plan estimate 2021 1,032,000 2022 911,000 2023 859,000 2024 866,000 2025 916,000

Schedule appears here... this will take the rest of the year, perhaps longer. https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/2e4fa3fc-bdfe-4582-9bac-60034eb0ef27_21.pdf May 28 - Disclosures due June 30 - Document Prodcution Jul 30 - Fact Discovery cut off Aug 20 - Expert Testimony Discovery Sept 24 - Expert Discovery cutoff Oct 8 - Dispositive deadline Nov 17 - Witness list Nov 17 - Pretrial Conference TBD - Trial

Per shared document... looks like updated HA base valuations. Philmont value... $153M Sea Base... $29M Northern Tier ... $8M Summit Note $43M The note from Summit is over $300M but they appraised Summit and looked at note and it’s value is only $43M.

There is a ton of info in this document. It includes a plan to continue to increase fees through 2025. Focus on increasing online programs for Cub Scouts. Targeting girls to increase membership. No Jambo in 2022. Financial data, etc. even those not interested in bankruptcy could find some info regarding the future of BSA.

Here is the file with all council assets detailed by the BSA. It also includes camp by camp value plus details how many claims are NOT time barred. Just search any council. BSA - Proposed Amended DS (omniagentsolutions.com)

Hearing to be held May 19th .. more info below. Link - May 19th hearing

I tend to agree; however, it does seems like the NY mediation was better than Miami. The TCC in their townhall was almost offended from the Miami interaction, but seemed more positive about NY. I don't expect it before May 19th, nor did they indicate they were close ... but perhaps they are making progress. One could hope.