Chapter 11 announced

[RememberSchiff]

The TCC Status Report

the Tort Claimants’ Committee and FCR were left with no alternative but to file the Standing Motion. (regarding J.P. Morgan settlement)

Absent a mediated resolution and in light of the Debtors’ proposed Plan that does not propose any compromise of the issues in the Restricted Property Action or the mediation brief, the Tort Claimants’ Committee will press forward with the Restricted Property Action.

(a lot of issues regarding LC's participation, cooperation, representation...)

The Tort Claimants’ Committee has reviewed substantially all of the assets and liabilities of the Local Councils and determined that they could collectively contribute multiples of the aspirational $300 million amount while at the same time continuing to operate in the ordinary course of business..(then next paragraph complains that Debtor did not provide that information to survivors)

Third, the Disclosure Statement does not present any financial information about the Local Councils, either collectively or individually. Absent disclosure of the fair market value of the Local Council assets and liabilities, no abuse survivor will be able to determine if the value he will receive under the Plan will satisfy ...

Fourth, there is no disclosure regarding what each Local Council proposes to contribute in exchange for its release.

(ditto CO's...)

All of the issues with the Local Councils’ participation are same with the Chartered Organizations except there is absolutely no information about what any of the Chartered Organizations might be willing to contribute. While two major religious organizations are mediation parties, they have not filed any mediation briefs or attempted to engage the Tort Claimants’ Committee in any mediation.

(concludes...)

Regardless of the rosy picture the Debtors try to portray, there is a substantial amount of work to be done and in many instances much of that work apparently has not yet begun. Given the current state of the proposed Plan and Disclosure Statement and the host of unresolved issues, Debtors cannot reasonably expect approval of their Disclosure Statement less than a month from now.

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/881136_2388.pdf

Edited March 16, 2021 by RememberSchiff
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[CynicalScouter]

2 minutes ago, 5thGenTexan said:

IF National is liquidated and its found that LCs or on the hook as well and they for all intents and purposes are dissolved,  Can that mean they start calling on Units, all of them, to empty their accounts and send it in?

Maybe?

Here's how it would work.

National ceases operations/is liquidated. Councils are chartered by National under the grant Congress gave. But with National no longer in existence, those Charters cease. The incorporated entities called Local Councils can no longer meet their main function, to administer the BSA program.

And since National charters Units, it means those units cease to exist as well. What that means is

1. National revokes all unit charters. The unit funds get transferred to Councils under the Charter and Bylaws of the Boy Scouts of America and the Rules and Regulations of the Boy Scouts of America.
2. National revokes all council charters. The council funds (which now include all unit funds) get transferred to National, again under the Charter and Bylaws of the Boy Scouts of America and the Rules and Regulations of the Boy Scouts of America.
3. National transfers all collected funds (unit, council, and National) to the Settlement Fund for Abuse Victims and shuts down.

 

[CynicalScouter]

10 minutes ago, RememberSchiff said:

The TCC Status Report https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/881136_2388.pdf

On the question @ThenNow asked about the Ad Hoc Committee again, it is a loose affiliation and represents absolutely no one.

Quote

To that end, the Tort Claimants’ Committee has attempted to meet (either inside or outside the mediation context) with certain of the Local Councils to present the Tort Claimants’ Committee’s analysis of their financial wherewithal. Those Local Councils (Silicon Valley Monterey Bay, Garden State, Greater New York, and Grand Canyon) have refused to meet and one other (Old North) has remained silent, which the Tort Claimants’ Committee interprets as a refusal to meet. Instead, the Local Councils are insisting that the Tort Claimants’ Committee meet with the advisors for the Ad Hoc Local Council Committee, which since the outset of the cases has made clear that it does not represent or speak for any of 253 Local Councils. To make things even more confusing, two of the members of the Ad Hoc Local Council Committee (Greater New York and Grand Canyon) have stated they would only consider attending the Tort Claimants Committee’s presentation solely in their respective roles as members of an ad hoc committee that has no power to act or negotiate on behalf of the 253 Local Councils.

And this line is very, very close to the example given before: TCC does not WANT to liquidate BSA and the LCs, but BSA National and the LCs better start cooperating or else the missiles start to fly and hundreds/thousands of suits are going to get filed.

Quote

To be clear, the Tort Claimants’ Committee does not seek the liquidation of the Debtors or the Local Councils; it seeks compensation for the 84,000 child sex abuse survivors that satisfies the requirements of the Bankruptcy Code.

 

[DavidLeeLambert]

7 hours ago, Eagle1993 said:

TCC gave the BSA until July? before they push for lawsuits against LCs.  In return, councils must provide details on membership [rolls], summer camps, units, etc.  TCC can then use this data (and time) to help clean up the claims list.  I wonder if TCC self audits (as they already seemed to have) and identifies possible issues with some claims.

So yes, the short summary is that BSA gave TCC a small concession, one that mostly affects the LCs and not them, in exchange for an extension of the preliminary injunction.

On March 8th, it looked like the TCC wasn't going to agree to extend, so they filed a motion asking the Court to extend it anyway:

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/875432_144.pdf

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/875435_145.pdf

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/875438_146.pdf

The local councils, and one of the insurers, agreed:

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/877257_148.pdf

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/877482_150.pdf

Then in the last hours of the day when objections were due, BSA filed a "Stipulation" it had entered with the TCC and UCC:

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/877749_151.pdf

It threatens Local Councils with losing the benefit of the injunction unless they cooperate as follows:

• Preservation of Rosters  - Basically, if they haven't shredded their troop rosters (and other documents with lists of names of Scouts, like camp rosters) from before 1999 already, they can't do that now.
• Roster Production Protocol - BSA will give the names, troop numbers, etc., of claimants to each council, and the councils will give back any matching copies of pre-1999 rosters to the BSA. The BSA will give the rosters to the TCC, Coalition, FCR, and insurers, after redacting any names of youth who are not claimants. 
• Survivor Request - An Abuse Claimant will be able to request his own roster from either the TCC or the Coalition. What he'll get back will have all youth names except his own redacted.

So the next day Century file a "Joiner" that actually objects to the stipulation:

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/877752_152.pdf

They say because many of the LCs and COs have claimed some sort of indemnity, in their proofs of claim, and the TCC hasn't objected to any of those claims, the objection should stand. Thay also complain that the roster-production protocol involves "identifying children and their affiliation with religious and other Chartered Organizations".

But some claimant attorneys and another insurer responded with real joinders to the BSA's motion:

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/877835_153.pdf

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/877941_154.pdf

And BSA and TCC filed replies to the objection:

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/880539_156.pdf

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/880545_158.pdf

[5thGenTexan]

53 minutes ago, CynicalScouter said:

Maybe?

Here's how it would work.

National ceases operations/is liquidated. Councils are chartered by National under the grant Congress gave. But with National no longer in existence, those Charters cease. The incorporated entities called Local Councils can no longer meet their main function, to administer the BSA program.

And since National charters Units, it means those units cease to exist as well. What that means is

1. National revokes all unit charters. The unit funds get transferred to Councils under the Charter and Bylaws of the Boy Scouts of America and the Rules and Regulations of the Boy Scouts of America.
2. National revokes all council charters. The council funds (which now include all unit funds) get transferred to National, again under the Charter and Bylaws of the Boy Scouts of America and the Rules and Regulations of the Boy Scouts of America.
3. National transfers all collected funds (unit, council, and National) to the Settlement Fund for Abuse Victims and shuts down.

 

I apologize for being dense, 

If National can't pull this off and ceases operation does that mean for sure OR its possible that LC must also cease even if they are still above water?

I ask because when I try to have this conversation with people, they firstly roll their eyes.  Then they tell me its ok because "Council *" has a lot of money and we will just keep on without National like nothing happened.

[ThenNow]

2 hours ago, CynicalScouter said:

So no, this is the OPPOSITE of TCC. TCC has authority, a clearly defined role, clearly defined attorneys, and works as a team  of lawyers together (or at least does so publicly, they may all squabble in the background for all we know).

Ad Hoc Committee is a cat herding exercise in which a the cats range from kittens to lions and the lions are just as likely to eat the cat herder as help. It has no authority over the other 220+ councils outside of "Oh, come on, PLEASE?"

I guess so...

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/881136_2388.pdf

To that end, the Tort Claimants’ Committee has attempted to meet (either inside or outside the mediation context) DOCS_SF:105210.3 85353/002 8 with certain of the Local Councils to present the Tort Claimants’ Committee’s analysis of their financial wherewithal. Those Local Councils (Silicon Valley Monterey Bay, Garden State, Greater New York, and Grand Canyon) have refused to meet and one other (Old North) has remained silent, which the Tort Claimants’ Committee interprets as a refusal to meet. Instead, the Local Councils are insisting that the Tort Claimants’ Committee meet with the advisors for the Ad Hoc Local Council Committee, which since the outset of the cases has made clear that it does not represent or speak for any of 253 Local Councils. To make things even more confusing, two of the members of the Ad Hoc Local Council Committee (Greater New York and Grand Canyon) have stated they would only consider attending the Tort Claimants Committee’s presentation solely in their respective roles as members of an ad hoc committee that has no power to act or negotiate on behalf of the 253 Local Councils.

[CynicalScouter]

1 hour ago, 5thGenTexan said:

If National can't pull this off and ceases operation does that mean for sure OR its possible that LC must also cease even if they are still above water?

To be clear, we are like, miles into hypothetical territory here. This has NEVER happened before. But there are three ways National can kill your LC.

1) Your Local Council is incorporated in your state to administer the Boy Scouts of America program in that area. See Charter of the Boy Scouts of America, ARTICLE VI. LOCAL COUNCILS - INCORPORATION OF LOCAL COUNCILS.

That program would not longer exist if National liquidates. Therefore, the legal basis for your LC existing just went POOF.

2) National could just simply yank your council charter (and all its assets) TODAY. NOW. Not wait for liquidation, just yank your charter. And all assets revert to the National Council. And your Council has already agreed to this in their articles of incorporation. See Charter of the Boy Scouts of America, ARTICLE VI. LOCAL COUNCILS - GENERAL.

Quote

Upon termination of a local council charter or dissolution of a council, all rights of management and ownership of local council property shall become vested in the National Council for use in accordance with the Rules and Regulations of the Corporation. Local council articles of incorporation and bylaws shall include or be revised to incorporate this provision at the time of chartering or the next charter renewal.

3) The judge determines that, either independently or based on item #1 and #2 above, all LC assets = BSA National assets. Therefore, the bankruptcy court orders the assets channeled into the Settlement Fund for abuse victims.

4) Let's say #1-3 don't happen. Your Council keeps all its assets and National goes away. Guess what National (or the dead hulk known as Boy Scouts of America) has? A congressionally granted exclusive right to emblems, badges, marks, and words associated with Boy Scouts. 38 USC 30905

Quote

The corporation [defined as Boy Scouts of America in 38 USC 30901] has the exclusive right to use emblems, badges, descriptive or designating marks, and words or phrases the corporation adopts. This section does not affect any vested rights.

And a bankruptcy judge is not going to hold a federal statute unconstitutional. So sure, Circle Ten can have a youth program, maybe. But it cannot have a Boy Scouts program.

In short, any council saying "Even without National we will survive" is full of bunk.

P.S. Circle Ten has $15 million, but it has been losing money hand over fist for YEARS.

 

[CynicalScouter]

Three Fires Council to close Camp Freeland Leslie; cites need to pay into Settlement Fund.

Remember: we were all told National would pay for it all. No LCs would be impacted. All donated funds would stay local.

Dear Friend of Camp Freeland Leslie,

 

The Boy Scouts of America’s bankruptcy filing and the necessity of a significant local council contribution to a victim’s trust has led the Three Fires Council Board of Directors to make the difficult decision to close Camp Freeland Leslie in Oxford, Wisconsin after the conclusion of the 2021 summer camp season. 

 

Three Fires Council has limited resources and with the need to make a significant contribution to a trust settlement, the Council is left with no other options than to part with CFL. A local real estate firm, which specializes in property sales of this nature, will be engaged to identify and secure a suitable buyer. If a buyer cannot be secured by the time our contribution is required, it is our intent to transfer the title of the property to the Trust. Additionally, the Council will need to contribute a significant amount, if not all, of its unrestricted reserve to this fund. This reserve has been built up over generations from investment income and will not include local Friends of Scouting gifts or permanently restricted endowment gifts from local donors. 

 

This is an emotionally challenging time. The Three Fires Council Board and the BSA have two priorities in this matter:

 

1.  Justly compensate victims of past abuse.

2.  Ensure our ability to continue the mission of the BSA in our local communities. 

 

Both of these objectives require this drastic action. 

 

Like you, a significant number of our executive board members and staff have a personal connection to Camp Freeland Leslie, as Scouts, staffers and more. None of the executive board members took this decision lightly. We must, however, put emotions aside and do what is best for the future of Scouting in Three Fires Council and for our Scouts. 

 

We anticipate multiple special events before the end of this summer’s CFL camp season that will allow all Scouts, alumni and community members to properly celebrate their memories at camp. Camp Freeland Leslie has been an important and impactful piece in the history of the council and its Scouts. We want to ensure that it is properly remembered and honored. 

 

We will hold virtual town hall meetings to answer questions and hear your feedback on this issue. These town halls will be held on Monday, March 22 and Wednesday, March 24 both at 6:30pm on Zoom. To RSVP, please use ThreeFiresCouncil.Org/CFL-Transition. We hope that you will join us for these evenings so that we may help everyone best understand the impacts of this decision. 

 

 

Sincerely,

 

 

 

 

Daniel Zedan                           Anna Tuohy                                                                             Clint Scharff                             

Council President                    Council Commissioner                   Scout Executive

 

 

Edited March 17, 2021 by CynicalScouter

[Eagle1993]

2 minutes ago, CynicalScouter said:

Three Fires Council to close Camp Freeland Leslie; cites need to pay into Settlement Fund.

Remember: we were all told National would pay for it all. No LCs would be impacted. All donated funds would stay local.

Dear Friend of Camp Freeland Leslie,

 

The Boy Scouts of America’s bankruptcy filing and the necessity of a significant local council contribution to a victim’s trust has led the Three Fires Council Board of Directors to make the difficult decision to close Camp Freeland Leslie in Oxford, Wisconsin after the conclusion of the 2021 summer camp season. 

 

Three Fires Council has limited resources and with the need to make a significant contribution to a trust settlement, the Council is left with no other options than to part with CFL. A local real estate firm, which specializes in property sales of this nature, will be engaged to identify and secure a suitable buyer. If a buyer cannot be secured by the time our contribution is required, it is our intent to transfer the title of the property to the Trust. Additionally, the Council will need to contribute a significant amount, if not all, of its unrestricted reserve to this fund. This reserve has been built up over generations from investment income and will not include local Friends of Scouting gifts or permanently restricted endowment gifts from local donors. 

 

This is an emotionally challenging time. The Three Fires Council Board and the BSA have two priorities in this matter:

 

1.  Justly compensate victims of past abuse.

2.  Ensure our ability to continue the mission of the BSA in our local communities. 

 

Both of these objectives require this drastic action. 

 

Like you, a significant number of our executive board members and staff have a personal connection to Camp Freeland Leslie, as Scouts, staffers and more. None of the executive board members took this decision lightly. We must, however, put emotions aside and do what is best for the future of Scouting in Three Fires Council and for our Scouts. 

 

We anticipate multiple special events before the end of this summer’s CFL camp season that will allow all Scouts, alumni and community members to properly celebrate their memories at camp. Camp Freeland Leslie has been an important and impactful piece in the history of the council and its Scouts. We want to ensure that it is properly remembered and honored. 

 

We will hold virtual town hall meetings to answer questions and hear your feedback on this issue. These town halls will be held on Monday, March 22 and Wednesday, March 24 both at 6:30pm on Zoom. To RSVP, please use ThreeFiresCouncil.Org/CFL-Transition. We hope that you will join us for these evenings so that we may help everyone best understand the impacts of this decision. 

 

 

Sincerely,

 

 

 

 

Daniel Zedan                           Anna Tuohy                                                                             Clint Scharff                             

Council President                    Council Commissioner                   Scout Executive

 

 

My local camp!   I’m sick

[CynicalScouter]

Just to put the fear of whomever into people that are not taking this seriously and reading/lurking this forum:

1) Three Fires Council in its last annual report indicated $3.3 million in support and revenue and $3.5 million in expenditures.

2) There were 126 abuse claims within Three Fires Council + 2 more that were in multiple councils including Three Fires.

3) Wisconsin's statute of limitations on abuse claims wasn't lifted or changed since 2007! Victims have until they day they reach 35 to file a claim.

What this means is LCs are starting to see the writing on the wall. Camp sell offs are going to be happening at a rapid clip.

And not only that, read this

Quote

Additionally, the Council will need to contribute a significant amount, if not all, of its unrestricted reserve to this fund.

As of 2018 that was around $2.8 million dollars (Part X, Line 27 "Unrestricted net assets").

So what they are saying is that $2.8 million PLUS the sale of their camp is what is going to be required for the settlement fund. Assume they get $1 for the camp, that means payment for the 126 claims ($2,800,000/126) = $22,222.

If you are with a local council, if you are a local scouter, if you are ANYONE who cares about scouting and reads this: be prepared to lose a LOT of your LC.

 

[Eagle1993]

17 minutes ago, CynicalScouter said:

Just to put the fear of whomever into people that are not taking this seriously and reading/lurking this forum:

1) Three Fires Council in its last annual report indicated $3.3 million in support and revenue and $3.5 million in expenditures.

2) There were 126 abuse claims within Three Fires Council + 2 more that were in multiple councils including Three Fires.

3) Wisconsin's statute of limitations on abuse claims wasn't lifted or changed since 2007! Victims have until they day they reach 35 to file a claim.

What this means is LCs are starting to see the writing on the wall. Camp sell offs are going to be happening at a rapid clip.

And not only that, read this

As of 2018 that was around $2.8 million dollars (Part X, Line 27 "Unrestricted net assets").

So what they are saying is that $2.8 million PLUS the sale of their camp is what is going to be required for the settlement fund. Assume they get $1 for the camp, that means payment for the 126 claims ($2,800,000/126) = $22,222.

If you are with a local council, if you are a local scouter, if you are ANYONE who cares about scouting and reads this: be prepared to lose a LOT of your LC.

 

CFL is a patrol cooking camp.  It turns a profit.  Its well run with great volunteers.  They ran camp during Covid and did it well.  I love that camp and we will be there this summer ...

While Three Fires is not my council, they are well run and have positive balance sheets.

This is what is happening with a settlement that will be rejected.  

Our only hope is that some of today's wealthy individuals buys the camps and keeps them as scout camps.  I can barely type .... I don't know how I am going to tell our scouts.  We already lost our long term in council camp a couple of years ago ... now this.  

 

[RememberSchiff]

12 minutes ago, CynicalScouter said:

...if you are a local scouter, if you are ANYONE who cares about scouting and reads this: be prepared to lose a LOT of your LC.

 

Already been there this past covid year - reduced council staff, training, hours, and our council camp closed by state restrictions and yet our local scouting continued.

[gpurlee]

I met a girl who sang the blues
And I asked her for some happy news
But she just smiled and turned away

American Pie

Don McLean

We seem to have quite the shortage of happy news at the present time. The bankruptcy is perhaps the most visible of the threats facing the BSA but I wonder if the impact of the pandemic may be the ultimate factor that leads to the demise of the organization.

In scanning our midwestern council’s most recent membership statistics, it appears that our total youth membership has plummeted almost 70% compared to the end of 2019! The Cub membership has been decimated with a loss of 80% of the total membership. Venturing is essentially gone. This will impact our FOS program, other fund-raising efforts, as well as activity and camp income. It will be very difficult to recover from losses at these levels. Many of our packs are for all intents simply gone even if they are still listed on paper. This is our feeder system for our troops. I fear that the welcome mat at schools may no longer be out for us. It will be a tough sale to recruit members as the BSA is bombarded with negative stories.  A perfect storm of events threatens to envelop us.

How do you justify the operation of multiple camps when just two years ago they were under-utilized? How do you justify current staffing and support levels with a program a fraction of the size it once was?

 How do you deal with over 350 claims of abuse even if half of them are not valid?

Scouting, when done correctly under the leadership of caring, committed adults, can be a life-changing program. I have seen it open a wealth of opportunities, provide unforgettable adventures and superb leadership development opportunities. It certainly has made a lifelong difference in the life of our family. I fear and mourn that my young grandsons may never have the opportunity for this experience.

And it saddens me that there seems to be no happy news.

 

 

[InquisitiveScouter]

54 minutes ago, gpurlee said:

I met a girl who sang the blues
And I asked her for some happy news
But she just smiled and turned away

American Pie

Don McLean

We seem to have quite the shortage of happy news at the present time. The bankruptcy is perhaps the most visible of the threats facing the BSA but I wonder if the impact of the pandemic may be the ultimate factor that leads to the demise of the organization.

In scanning our midwestern council’s most recent membership statistics, it appears that our total youth membership has plummeted almost 70% compared to the end of 2019! The Cub membership has been decimated with a loss of 80% of the total membership. Venturing is essentially gone. This will impact our FOS program, other fund-raising efforts, as well as activity and camp income. It will be very difficult to recover from losses at these levels. Many of our packs are for all intents simply gone even if they are still listed on paper. This is our feeder system for our troops. I fear that the welcome mat at schools may no longer be out for us. It will be a tough sale to recruit members as the BSA is bombarded with negative stories.  A perfect storm of events threatens to envelop us.

How do you justify the operation of multiple camps when just two years ago they were under-utilized? How do you justify current staffing and support levels with a program a fraction of the size it once was?

 How do you deal with over 350 claims of abuse even if half of them are not valid?

Scouting, when done correctly under the leadership of caring, committed adults, can be a life-changing program. I have seen it open a wealth of opportunities, provide unforgettable adventures and superb leadership development opportunities. It certainly has made a lifelong difference in the life of our family. I fear and mourn that my young grandsons may never have the opportunity for this experience.

And it saddens me that there seems to be no happy news.

 

 

There is happy news...it's over a hundred years old.

There was a time when there were no "Scouts."  And the movement started with idea from an old crusty British Army guy.

No need to worry...kids want Scouting, and it will happen.  Be there for them.  Take them camping.  You already know the like-minded people around you.

BSA is not the be-all-end-all of Scouting.  Just the current major market-share provider.  If they go away, be a grass roots startup.  You will have a blast. 

[ParkMan]

1 hour ago, CynicalScouter said:

Just to put the fear of whomever into people that are not taking this seriously and reading/lurking this forum:

1) Three Fires Council in its last annual report indicated $3.3 million in support and revenue and $3.5 million in expenditures.

2) There were 126 abuse claims within Three Fires Council + 2 more that were in multiple councils including Three Fires.

3) Wisconsin's statute of limitations on abuse claims wasn't lifted or changed since 2007! Victims have until they day they reach 35 to file a claim.

What this means is LCs are starting to see the writing on the wall. Camp sell offs are going to be happening at a rapid clip.

And not only that, read this

As of 2018 that was around $2.8 million dollars (Part X, Line 27 "Unrestricted net assets").

So what they are saying is that $2.8 million PLUS the sale of their camp is what is going to be required for the settlement fund. Assume they get $1 for the camp, that means payment for the 126 claims ($2,800,000/126) = $22,222.

If you are with a local council, if you are a local scouter, if you are ANYONE who cares about scouting and reads this: be prepared to lose a LOT of your LC.

 

If I were a betting man...

- 50% or more of local camps that exist now will be sold.

- In the next 18 months we'll merge down to one council per 10,000-15,000 scouts.  Each will retain a camp

- all other council owned buildings will be sold to preserve whatever camps we can.