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Per WSJ -BSA may declare bankruptcy


Eagle1993

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There wasn’t much beyond the first paragraph.  This is one key

“Filing for bankruptcy would put the brakes on the litigation and give the nonprofit the chance to negotiate with victims who have sued.”

I think the GSUSA damages (if any) could be lumped in.  

However, bankruptcy could lead to some ugly outcomes.   

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I am writing to you today in anticipation of news reports that will speculate about the BSA’s financial position. We have an important duty, and an incredible opportunity, to focus as an organization on keeping children safe, supported and protected, and preparing youth for their futures through our nation’s foremost program of character development and values-based leadership training. 

To do so in perpetuity, we are working with experts to explore all options available to ensure that the local and national programming of the Boy Scout of America continues uninterrupted. We have a social and moral responsibility to fairly compensate victims who suffered abuse during their time in Scouting, and we also have an obligation to carry out our mission to serve youth, families and local communities through our programs.

We care deeply about all victims of child sex abuse and we are steadfast in our belief that one incident of child abuse is one too many. We sincerely apologize to anyone who was harmed during their time in our programs. As you all know, we have always taken care of victims – we believe them, we believe in fairly compensating them and we have paid for unlimited counseling, by a provider of their choice, regardless of the amount of time that has passed since an instance of abuse. Throughout our history we have taken proactive steps to help victims heal and prevent future abuse. I want to stress that at no time in our history have we knowingly allowed a sexual predator to work with youth, and we always seek to act swiftly when alerted to abuse allegations. 

Please know that these matters continue to have the full attention of the highest levels of our organization, and we will communicate transparently as there are developments or updates to share. I wanted to update you today due to the news speculation, and I want to assure you that our daily mission will continue and that there are no imminent actions or immediate decisions expected. 

Thank you for your continued support of the Boy Scouts of America.
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Michael B. Surbaugh
Chief Scout Executive
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Prepared. For Life.
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Boy Scouts of America
1325 West Walnut Hill Lane Irving, TX 75038
Copyright © 2018 Boy Scouts of America. All rights reserved.
 
 

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Edited by Eagle1993
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2 minutes ago, Sentinel947 said:

What effect would National's bankruptcy have on the Councils?

I thought (think??) the Councils and Nationals money and finances are separate to a degree.  For example National cannot make councils pony up cash to pay for Summit-a-palooza and all those costs.  Just as National will likely not bail out a council for bad finance decisions and spending.

There is overlap for pensions and the membership dues

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Local camps are council property, and many of them are actually private or public trusts, and not actually owned by BSA or councils.  Both Philmont and Summit are held in trusts as well, so not like BSA could sell that (expenses of operating thee, whole different story).  I have no idea about Seabase or Northern Tier, but assume those are held in trusts or at least there are restrictions that they can't be sold.  The optics of the whole thing are more the damaging part.

A couple other articles:

https://www.washingtonexaminer.com/news/boy-scouts-weighs-bankruptcy

https://www.scsun-news.com/story/news/local/new-mexico/2018/12/12/lawsuit-accuses-boy-scouts-negligence-new-mexico-abuse-case/2289026002/

 

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Unless they owe you or you work at national I don't think this will change anything. This is about restructuring debt, which is code for owing less. I doubt national actually owes much they could sell, otherwise they would have already sold it.

Restructuring the leadership at the top might be a good thing, though. But I don't know who would do that. We should volunteer!

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