Chapter 11 Announced - Part 4 Revised Plan

[CynicalScouter]

I wanted to post this here as well as it gets at what LCs are contributing. 

Quote

Grand Canyon Council is required to contribute just over $7 million for the settlement trust.

This may be the first council to announce a specific number (well, close to specific "over $7 million") about how much they have to pay.

It is also a BIG deal in that GCC was a member of the Ad Hoc Committee of Local Councils. It also likely had a ton of LDS claims.

It is made up of parts of Arizona (an open state) and western New Mexico (Gray 1 = 50%-70% valuation of claims)

Let's break that down. All data from the 4th amended plan https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/ee5156a3-0c08-4833-a600-8256c44c8a56_5485.pdf

Balance Sheet

Assets
Cash & Equivalents	2,166,111
Land, Buildings, and Equipment	5,752,921
Long-Term Investments	6,233,695
Other Assets	115,989
TOTAL ASSETS	14,258,716
Liabilities
Debt	448,968
Other Liabilities	589,200
TOTAL LIABILITIES	1,038,168
Unrestricted Net Assets	9,582,089
Restricted Net Assets	3,638,459
TOTAL NET ASSETS	13,200,548

Asset lists

R-C Scout Camp	$2,250,000	Unrestricted Asset (U)
Camp Geronimo	$4,641,300	Unrestricted Asset (U)
Camp Raymond	$3,810,443	Restricted Asset (R)
Heard Scout Pueblo	$7,350,000 OR $8,140,000	Unrestricted Asset (U)
Little Grand Canyon Ranch	$1,510,000	Unrestricted Asset (U)
Total Property	$19,561,743 OR $20,351,743
Total Unrestricted Property	$15,751,300 OR $16,541,300

Claims

• All Unique & Timely Abuse Claims = 497 (plus some shared with other councils)

• All Not-Barred, Unique & Timely Abuse Claims = 475

Bottom Line

$7 million represents:

• 73% Unrestricted Net Assets (based on balance sheet)

• 53% TOTAL NET ASSETS (based on balance sheet)

• $14,085 per claim on average ($7,000,000/497)

• 34-36% of property

• 42-44% of all unrestricted property

 

[CynicalScouter]

One more point about the math:

$650,000,000 (what LCs promised) / 82500 (claims) = $7878 on average per claim

Grand Canyon is paying out almost double that ($14,085 on average per claim), but that is likely because they are getting claims from an open state (Arizona) and a Gray 1 state (New Mexico).

[ThenNow]

5 hours ago, CynicalScouter said:

But here's the thing: to my knowledge NONE of the Catholic Dioceses have ever been criminally prosecuted. And not only did they hide the abuse, they actively moved priests around

Right. I, for one, didn’t say anything about prosecutions. My point is, an exhaustive (or thorough) investigation and a nice five pound report revealing criminal activity is potent in its own right. I have no delusions of mass arrests and public trials in the town square. I will be as content as I am able to learn what happened and let the chips ahoy fall where they may. That’s how the cookie crumbles...

[ThenNow]

4 hours ago, CynicalScouter said:

All data from the 4th amended plan

I assume you’ve referenced the BSA balance sheets. So love to see a side-by-side with BRG’s findings.

[PACAN]

So when do we see Exhibit C...LC contributions?

[CynicalScouter]

11 minutes ago, PACAN said:

So when do we see Exhibit C...LC contributions?

Friday was the deadline for Councils to vote on how much they will contribute to the settlement. I believe under the Third Amended Plan BSA was going to have the LCs file a document detailing who was contributing what by July 19, so I would imagine individual LC contributions will be filed with the court in the next two weeks.

Edited July 10, 2021 by CynicalScouter

[CynicalScouter]

17 hours ago, ThenNow said:

I assume you’ve referenced the BSA balance sheets. So love to see a side-by-side with BRG’s findings.

What BSA produced is also consistent with what Grand Canyon Council filed as its IRS 990 forms. Here is their 2019 filing (there's no 2020 filing yet or at least not online) and the end-of-year 2019 balance sheet is very, very close to BSA's reported balance sheet for that Council as of February 2021.

https://www.causeiq.com/organizations/view_990/860101295/6c4248997200abade969959f2d1bba99

So, unless Grand Canyon Council's lying both to the court and the IRS, it is being upfront with its balance sheet.

Edited July 10, 2021 by CynicalScouter

[CynicalScouter]

This has been a night and day.

Got off the phone with someone I know who sits on my council after the voting this week.

We have no camp, no real property, and no office, so our contribution has to be entirely in cash.

We have around $1.5 million in assets with $250,000 in expenses every year.

We are going to have to pay a little over $1 million, including our entire endowment. We'll be left with less than 2 years of operating expenses ($500,000; we'll be left with $450,000). Talks have started to merge into our council next door; the council already voted 2 months ago to merge districts within the Council. The only remaining question is whether our Council will be cut in two (half go to one council, half the other) or all go into one council.

So, as a reminder to all, we (my committee chair and scoutmaster) sent an email to all parents last spring indicating we were not expecting BSA to survive and that we'd do what we could to get our Star/Life scouts to Eagle before things folded. This person, who has been in scouting for 17 years and is not what I would call a panicky person, indicated "I've told my troop the same and others have as well." The expectation is that even if scouting survives, the COs are going to leave en masse.

Locally, the COs are in open rebellion and, as someone else mentioned in NJ, the Methodist churches will likely just outright abandon units at the next recharter in December. We have one Catholic diocese that covers our entire council and it is currently "debating" whether to issue a no-more-COs order. I spoke with the committee chair of the troop that is chartered by the parish and he says the pastor wants to keep the troop and pack alive and be the CO, but he has to do what he's told.

Edited July 10, 2021 by CynicalScouter

[MYCVAStory]

On 7/9/2021 at 1:14 PM, CynicalScouter said:

This is, I think, Kosnoff's point: IN HIS VIEW (not mine, HIS) the 9 men who are the TCC are in over their heads and being manipulated by Strang, Coalition lawyers, and other attorneys. who are looking to cash in a) for their own personal benefits and b) the repay Wall Street backed loans.

Kosnoff's made the clear in his Twitter feed already and I suspect will be what is deposition looks/sounds like.

Edited yesterday at 01:42 PM by CynicalScouter
Want to be clear this is Kosnoff's view of the TCC, not mine

Sounds a lot like someone who got kicked out of the dance and found himself complaining about the music from the parking lot.

[Sentinel947]

3 hours ago, CynicalScouter said:

Locally, the COs are in open rebellion and, as someone else mentioned in NJ, the Methodist churches will likely just outright abandon units at the next recharter in December. We have one Catholic diocese that covers our entire council and it is currently "debating" whether to issue a no-more-COs order. I spoke with the committee chair of the troop that is chartered by the parish and he says the pastor wants to keep the troop and pack alive and be the CO, but he has to do what he's told.

The only options going forward are for Troops to charter with the council and get the facility use agreement, or the CO's need to bring the unit completely under CO control and oversight. That would likely entail closing membership of the unit to only individuals who are members of the CO. That would kill most troops in my local area, since even the Catholic ones take on non church members as Troop members. 

CO's would be foolish to continue chartering Troops and simply rubberstamping the paperwork as they have done previously. 

Edited July 10, 2021 by Sentinel947

[ThenNow]

6 hours ago, CynicalScouter said:

What BSA produced is also consistent with what Grand Canyon Council filed as its IRS 990 forms. Here is their 2019 filing (there's no 2020 filing yet or at least not online) and the end-of-year 2019 balance sheet is very, very close to BSA's reported balance sheet for that Council as of February 2021.

So, if all is buttoned and zipped, let’s see the BRG Dashboards. Small ask if they are mirror images or mere inches apart. 

[ThenNow]

5 hours ago, CynicalScouter said:

We are going to have to pay a little over $1 million, including our entire endowment. We'll be left with less than 2 years of operating expenses ($500,000; we'll be left with $450,000).

If it’s appropriate, what is your claim exposure? If you already said, my apologies.

[SiouxRanger]

On 7/8/2021 at 6:51 AM, ThenNow said:

Welcome and thanks for a very good post. That’s a dandy for #1!

As to the quoted portion, has he ever unpacked that for you? I haven’t heard anyone else express something to that effect and it may well be a revelation into my experience. Many people are shocked to hear I was abused for years, yet persisted in Scouting to achieve what I set out to achieve. Only as I read what you wrote about your friend did I consider what would have “happened to me” had I dropped out at 11, the time of my first abuse. The picture was not pretty. As those who’ve read my posts know, many things about my Scouting life are precious to me. I took many things to my therapist to dispose of when I first started working with her on all of this, but some mementoes I wouldn’t part with, including my Eagle Certificate and pin, sash, key patches, NESA pin and a few photos. Just prior to the Chapter 11 filing I made a significant move to reconcile with Scouting. Against the advice of family, I wanted to become involved again. Then, two months later, I read the announcement in the WSJ. Thus began the adventure of the BSA Bankruptcy Seesaw Game.

If he’s given you any insight into what he meant, I would welcome it. 

He has tangentially unpacked the abuse he was subjected to.  It is more than I care to discuss, not feeling at liberty to do so, even concealing identifying details, and don't even care to contemplate, except to help me wrap my own mind around the degree and depths of the damage done.

I believe that children remember most negative comments directed their way for life and those comments have some hanging presence or at least ghost-like shadows that surface from time to time and haunt them..

Inappropriate sexual activities-well, I cannot imagine the depths to which one who has been subjected to them have sunk emotionally at times during their life.  I would think that suicide ideation is high on the list.  This is serious.

We are talking about mere, innocent children being subjected to an event or events of intense, unwanted, and unacceptable intrusion into their entitlement to their own personal emotional integrity.  It is emotional rape if not also physical rape.

Everyone is entitled to feel safe wherever they are.  Physically and emotionally.

My friend reports to me he has had weekly therapy session since I knew him as a teenager.  Now being nearly 50 years later, me only being brought into the loop about 3 years ago.  I was stunned when I learned.  But I understand.  Who wants to tell anyone of being subjected to such actions?

"How can he be such a good friend if you only learn XXX years later?"  He lives more than 1,000 miles away-left after college.  We've communicated by emails and such, and when I learned, I flew out to meet with him.  He is tough, but hurting and it has now, late in life, turned debilitating.

I did not enjoy high school, and won't be attending perhaps my senior class' last reunion.  I wasn't treated well by many in my class.  I was a nerd, did well in mathematics, poorly in sports, chess champion, and was a Boy Scout.  My experiences in high school, frankly, really hurt me. And to this day.

However, with the public advent of sexual abuse in Boy Scouting, I now understand that however I feel about how I was treated in high school, it is NOTHING compared to the damage done to those who were sexually abused in the scouting program.

I have two further comments.

First, that those abused did nothing wrong.  They did not fail.  They are not weak.  They clearly did not deserve what happened to them. They were targeted by predatory adults driven by their own impulses and motives, having superior age and knowledge, who planned their attacks.  Lying-in-wait has virtually no defense.  Children have no defense against such advantages.

Second, those abused should have no shame.  Cast off the emotional burden placed on you by the adult who targeted you. You just happened along and they attacked when the opportunity presented itself.  If you had not happened along, they would have awaited another victim-you would have been spared, but another would be the victim in your place. You are merely the victim by accident. You are NOT responsible for the criminal intent or activities of adults.

I am always struck by the wisdom and admonition of the Biblical quote:

"That which you do to least of mine, you do to Me."

I guess I do not understand how an organization which requires a religious component...

[SiouxRanger]

Thanks to everyone who has welcomed me to this forum.

I'd really rather never need to be here.

My life has been Scouting.

Worked at the local camp and Philmont a number of years.  Three Eagle Scout sons.  Multiple Philmont Treks.

I care not about awards and knots and such.  I've qualified for many knots, but won't apply.  I care about what scouts see and do and what they learn.

Other than earning Eagle, and my Philmont staff years, I have been blessed with 7 Mentor Pins (and perhaps another tomorrow, so I have been informed) and making a positive difference in the life of a boy (scout-and now girls, too) is what is important.

And that is what Scouting is all about.

[SiouxRanger]

On 7/8/2021 at 6:41 AM, gpurlee said:

Welcome to the forums SiouxRanger. Thank you for your post.

You have valid points. It should be noted that established bankruptcy law dictates the priority of some of the claims such as pension funds.

Unfortunately, the fallout from this situation may continue for some time.  

Thanks for the Welcome.

I doubt any measure of rebranding will improve the status of BSA.  This whole situation is a horrible hit.