Chapter 11 announced - Part 3 - BSA's Toggle Plan

[jr56]

TCC?

[RememberSchiff]

1 hour ago, jr56 said:

TCC?

Tort Claimants Committee

[jr56]

Thanks.  People start using abbreviations, and if you have not been reading every post, you have no idea what people are talking about.  

[ThenNow]

FYI.

https://www.wsj.com/articles/boy-scouts-pressured-to-end-bankruptcy-explore-leaving-local-councils-behind-11618274576?st=aszhn8is83efdt0&reflink=article_copyURL_share

[RememberSchiff]

From the wsj article:  "The fallback plan also doesn’t require strong support from abuse survivors, the Boy Scouts said in court papers Monday."  Huh?

I dunno, it seems this third plan ( Global-Toggle) more addresses the prerequisites for a cram-down (note comparison with estimated Chapter 7 payouts) than the complaints about the second "Revisied Plan".

[skeptic]

3 hours ago, ThenNow said:

FYI.

https://www.wsj.com/articles/boy-scouts-pressured-to-end-bankruptcy-explore-leaving-local-councils-behind-11618274576?st=aszhn8is83efdt0&reflink=article_copyURL_share

The local council comment uses the term, "must be realistic".  There lies the rub.

[fred8033]

WSJ:  "The Boy Scouts put forth an alternative chapter 11 plan that would resolve sex-abuse liabilities for only the bankrupt national organization, while leaving local councils spread across the country open to thousands of legal claims."

Considering the current deadlocked situation, this seems like a good idea.  It would move things forward which is probably the most important point.  It would also weed out legal actions that are fishing for money instead of helping victims and helping create a better future.

Most importantly, it would let BSA national continue to survive so that locally scouting units and councils have a coordinated program.

[T2Eagle]

51 minutes ago, fred8033 said:

WSJ:  "The Boy Scouts put forth an alternative chapter 11 plan that would resolve sex-abuse liabilities for only the bankrupt national organization, while leaving local councils spread across the country open to thousands of legal claims."

Considering the current deadlocked situation, this seems like a good idea.  It would move things forward which is probably the most important point.  It would also weed out legal actions that are fishing for money instead of helping victims and helping create a better future.

Most importantly, it would let BSA national continue to survive so that locally scouting units and councils have a coordinated program.

The challenge with it, besides leaving a lot of victims completely uncompensated, is that it would lead to bankruptcy for virtually every council in at least half a dozen states, and a lot more trouble for the COs there also.  So that much more money into legal fees on both sides and a very non-rationalized change in resources in those states.  For instance, some really well run, really well attended camps that happen to not be deed restricted would end up sold, while camps with few resources, probably lacking in modern enough facilities and infrastructure, but that happen to be restricted, would be left.  None of those decisions would have anything to do with ideas like geography or population accessibility.

BSA had to lay out this possibility because it had to respond to motions from the creditors, but it's a pretty bad option for both sides.

[yknot]

57 minutes ago, fred8033 said:

WSJ:  "The Boy Scouts put forth an alternative chapter 11 plan that would resolve sex-abuse liabilities for only the bankrupt national organization, while leaving local councils spread across the country open to thousands of legal claims."

Considering the current deadlocked situation, this seems like a good idea.  It would move things forward which is probably the most important point.  It would also weed out legal actions that are fishing for money instead of helping victims and helping create a better future.

Most importantly, it would let BSA national continue to survive so that locally scouting units and councils have a coordinated program.

I wondered if that might be some kind of dystopian solution too but it does seem like there would be too much scorched earth for scouting to survive long term. I'm not sure how practical issues like liability insurance could be resolved. I'm also not sure about the public perception side of this. From a purely public relations standpoint, it would be better to resolve 83,000 claims at once even if some are questionable rather than to fully litigate 1000 or even 100 or maybe even 10 lurid, gut wrenching cases through the court system and mainstream media.  The 83,000 claims are somewhat abstract in the public mind but even just a dozen fully litigated cases, with human victims and damning testimony, is what could really kill scouting for good in the U.S.

 

[skeptic]

And there is part of the problem.  A small group of people "prefer" that every lurid innuendo is thrown into the public eye.  They do not care about anything but money and media attention.  What is actually fair, balanced, and in the best interest of the greatest number involved does not matter in the least.  Back to the local trenches.  

 

[David CO]

1 hour ago, yknot said:

I'm also not sure about the public perception side of this. From a purely public relations standpoint, it would be better to resolve 83,000 claims at once even if some are questionable rather than to fully litigate 1000 or even 100 or maybe even 10 lurid, gut wrenching cases through the court system and mainstream media.  The 83,000 claims are somewhat abstract in the public mind but even just a dozen fully litigated cases, with human victims and damning testimony, is what could really kill scouting for good in the U.S.

I couldn't disagree with you more.  It is important that the truth be told.  I am very disappointed that people had to file lawsuits in order to make the truth public.  I would be even more disappointed if the lawsuits were quickly and quietly settled just to hide the truth again.

Dishonesty is what is killing BSA.  

 

[David CO]

2 hours ago, skeptic said:

And there is part of the problem.  A small group of people "prefer" that every lurid innuendo is thrown into the public eye.  They do not care about anything but money and media attention.  What is actually fair, balanced, and in the best interest of the greatest number involved does not matter in the least.  

I disagree.  Sometimes the truth is disagreeable and unpleasant.  We still need to be truthful.  Telling the truth about child sexual abuse in BSA is in the best interest of the greatest number.  

 

Edited April 16, 2021 by David CO

[RememberSchiff]

Mediators Second Report:

"The Mediators have been informed that such mediated discussions have resulted in a settlement between the BSA, on the one hand, and Hartford Accident and Indemnity Company, First State Insurance Company, Twin City Fire Insurance Company and Navigators Specialty Insurance Company (collectively, “Hartford”), on the other hand."

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/886772_2624.pdf

"Subject to all of the terms and conditions of this Agreement, Hartford Accident and Indemnity Company, First State Insurance Company, Twin City Fire Insurance Company and Navigators Specialty Insurance Company shall be jointly and severally liable for, and shall pay the BSA or, at the BSA’s written direction, the Settlement Trust (or other designee, assignee, or successor of the BSA, as specified in writing by the BSA), the total amount of six hundred fifty million dollars ($650,000,000.00) (the “Settlement Amount”). The Settlement Amount shall be paid in United States currency, via wire transfer or other acceptable means, within thirty (30) days of the date on which Hartford Accident and Indemnity Company, First State Insurance Company, Twin City Fire Insurance Company and Navigators Specialty Insurance Company receive written notice of the Agreement Effective Date from the BSA. Such notice shall also contain details identifying the payee and account(s) into which payment of the Settlement Amount shall be made. In the event payment is due on a date that is not a business day, the payment shall be due on the first business day thereafter."

[Eagle1993]

That seems like a pretty big step forward.  It brings the settlement trust to $1.2B+.   

[David CO]

22 minutes ago, RememberSchiff said:

"The Mediators have been informed that such mediated discussions have resulted in a settlement between the BSA, on the one hand, and Hartford Accident and Indemnity Company, First State Insurance Company, Twin City Fire Insurance Company and Navigators Specialty Insurance Company (collectively, “Hartford”), on the other hand."

I'm not sure what this means for the councils and CO's.  Are the insurance companies off the hook now when the LC's and CO's are sued under the "toggle" plan?