Chapter 11 Announced - Part 5 - RSA Ruling

[CynicalScouter]

2 hours ago, RememberSchiff said:

The judge has approved stay removals on a case by case basis.  IMHO, the judge should stand firm on the October deadline unless ...hmmm ...say a plan goes out for vote before Oct 28. If voted down then.... 

More of the same is self-perpetuating.

My $0.02,

Who does that benefit? Not BSA. The problem is that if she doesn’t extend the stay past October, 1200+ lawsuits against BSA go “live” in state courts throughout the nation.

BSA and their attorneys instead of focusing on the bankruptcy will be having to fend off hundreds of lawsuits all at the same time.

[yknot]

25 minutes ago, CynicalScouter said:

Who does that benefit? Not BSA. The problem is that if she doesn’t extend the stay past October, 1200+ lawsuits against BSA go “live” in state courts throughout the nation.

Maybe that benefits the judge, LOL.  

[CynicalScouter]

21 minutes ago, yknot said:

Maybe that benefits the judge, LOL.  

It wouldn't. Let me explain why.

If all that active pending litigation against BSA goes live, suddenly 1200+ plaintiffs and their attorneys become interested parties to the bankruptcy as anything that takes place there can be res judicata against THEIR lawsuits in state court. Her dockets and hearings and who is entitled to speak and be heard jump from a few dozen lawyers to hundreds as they are now interested parties.

There's a reason why pauses are put in place like this. It is to maintain the status quo while the bankruptcy sorts itself out. If you let this become a free-for-all, look out.

If you are trying to get BSA to come to an agreement with the major groups in this case (TCC, FCR, Coalition, Insurers other than Hartford, Hartford, and the COs) dumping 1200 more lawsuits on their lap is NOT going to get you there.

All that does, at most, is make BSA bleed out cash even FASTER as its legal bills in 1200 state court cases eat up whatever is left of BSA.

Edited September 10, 2021 by CynicalScouter

[Eagle1993]

Any updates from the TCC townhall?

[CynicalScouter]

7 hours ago, Eagle1993 said:

Any updates from the TCC townhall?

According to Kosnoff TCC has “caved” in the RSA and forthcoming plan 5.0

Warning foul language ahead 

https://twitter.com/sexabuseattys/status/1436152941468008454?s=21

My guess: the TCC accepted  the rumored $850 million Hartford deal as “best we can hope for”.

Edited September 10, 2021 by CynicalScouter

[CynicalScouter]

Century is now demanding document and other discovery from Catalur Special Opportunities Fund I, LP and Catalur Capital Management, LP.

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/694c48ae-f39e-4e81-9afe-9d3ba16136bd_6188.pdf

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/f1403599-c360-4263-8bfd-9fe6b87daa56_6189.pdf

Who are they you ask? They are the Wall Street hedge fund(s) that helped in part bankroll the entire mass aggregation program.

From a previous filing https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/870566_1975.pdf

Quote

C. Plaintiffs’ firms used hedge fund money to buy claims sight-unseen from the businesses that generate them.
The money for this effort to run up the claim number came, at least in part, from investment funds. UCC filings detail the capital invested in generating claims and collateral exchanged in return.17 In just one example, Catalur Capital Management, a New York-based hedge fund, has provided financing to firms such as Andrews & Thornton and Slater, Slater & Schulman, securing its investment with recoveries from the BSA litigation.18 Mr. Kosnoff alludes to this in his email when he refers to “motherfunders” buying and selling claims.19

 

[MYCVAStory]

4 hours ago, CynicalScouter said:

According to Kosnoff TCC has “caved” in the RSA and forthcoming plan 5.0

Warning foul language ahead 

https://twitter.com/sexabuseattys/status/1436152941468008454?s=21

My guess: the TCC accepted  the rumored $850 million Hartford deal as “best we can hope for”.

ABSOLUTELY untrue.  Spoke to the TCC...they have NOT seen a new plan and are preparing for it as well as other options.  THIS is an example of Kosnoff really working against the interest of ALL survivors to try and control the narrative for some reason.  Disgusting.  The TCC made it clear it is fighting and will continue to do so. an dis trying to say what it can while under mediation confidentiality.  It's a shame someone not included is damaging the hope of survivors.  Shame.

[CynicalScouter]

17 minutes ago, Eagle1993 said:

I expect if Kosnoff is able to rally support to get the plan rejected (note we don't know if, in the end, he will attempt that yet as there is no final official plan)

IMHO in reading his prior statements, unless that BSA Plan 5.0 is total liquidation of BSA OR BSA and Local Councils, he will attempt to rally victims to reject.

[CynicalScouter]

TCC video now live

https://www.dropbox.com/s/7i01h4syy3vtgpb/BSA Town Hall 9-9-21.mp4

NOTE: if you watch it in browser/drop box it cuts off a 1 hour precisely. Download for last 8 minutes or so.

Edited September 10, 2021 by CynicalScouter

[Eagle1993]

2 hours ago, CynicalScouter said:

IMHO in reading his prior statements, unless that BSA Plan 5.0 is total liquidation of BSA OR BSA and Local Councils, he will attempt to rally victims to reject.

I hedged a bit as on twitter a few times he told people he had not yet decided his opinion until he read the plan.  I'm not 100% convinced he would only support Ch 7.  That said, I think he would likely want to see a much higher contribution from the LCs than they are paying currently in the RSA.  Now, if BSA and LCs increased their contribution to a significant portion of their total assets I would think he could support the deal.  Note that I am not saying this is feasible or likely, only that I wouldn't be surprised if he supported a deal short of Ch 7 ... just not this deal.

[CynicalScouter]

17 minutes ago, CynicalScouter said:

TCC video now live

https://www.dropbox.com/s/7i01h4syy3vtgpb/BSA Town Hall 9-9-21.mp4

NOTE: if you watch it in browser/drop box it cuts off a 1 hour precisely. Download for last 8 minutes or so.

Big takeaways

1) Information on mental health services now on the tccbsa.com website.

2) Stang: Lots of people asking in chat how long will this take. Very dynamic. Gave a review of the RSA proceedings: Hartford deal and Coalition fees. The RSA was NOT approved, it WAS NOT approved. The RSA self-executing termination date has already lapsed (August 27), so the RSA is dead. People are now able to go their own directions. TCC expecting Plan 5.0 and has been expecting it. Stang's theory: BSA would like to reach an agreement with at least 1 insurance company (or 1 more company?) into Plan 5.0 to demonstrate to victims that there is momentum in this case. Ongoing mediation/organizations. Hearing September 23 on disclosure. Normally, the TCC and other creditors would get 20 days to review that statement. We are obviously past that. Whether the BSA can do that, whether they can file something NOW without seeing the Plan 5.0 or disclosure statement and still expect to have a hearing on it for September 23 is TBD. There have been offers and counteroffers betweens parties and one insurance carrier. Cannot say what happens here, not because of mediation privilege, but because things are so moving. Where will the TCC end? They want fair compensaiton for victims.

3) Humprey: Non-monetary demands are also a part of this

4) Q&A portion IV files be released? Can find some at the LA Times website. BSA has resisted releasing any more. TCC committed to having that information released. What is Omni Management Services? Omni a company is "claims agent". Bookcase/safe. Crazy stuff: RSA was not approved. The press headlines were not accurate. It is frustrating that media is reporting there is a settlement when there isn't. The RSA spelled out how claims would be valued and how much would be paid. LOTS of proofs of claims are incomplete. $3500 pay out option. If the claims trustee decides after reviewing things you claim is NOT credible, you will get $0. If you want to, you can go back into state court. Or you can go the settlement trustee plan laid out in the RSA to determine a value. Then the trustee would put assets against claims. The TCC has targets in mind for how much per victim and how much each entity will have to pay. The when is less clear. The pressure is on the insurance companies to pay out fairly on these claims. Trying to leverage the insurance companies. But remember: the BSA are the insured. TCC will push BSA to make reasonable demands on the insurance companies. We are NOT at a place that INDIVIDUAL claims are being examined. We are looking at ALL claims and TOTAL money. What is my claim number? And who is my attorney? There will be an opportunity for claimants to vote yes or no on the plan. Be in touch with your counsel. Make an informed vote. TCC will have its opinion. The TCC lawyers do NOT represent you. Contact your attorney. There likely will be more than one plan. Look at the RSA. It may be dead, but it does give you some idea what people are talking about and looking at. Statute of limitations question: it is based on where the abuse took place not where you live today. Why is there a statute of limitations scaling factor (this is the "Gray 1/2/3" system)? We have people on TCC from states that are very different. No one believes the statute of limitations are fair. But there's a reality: the insurance companies don't get a damn about that. The insurance companies will say "we are NOT paying on that". I am not going to ask an insurance company to pay me $1 million on a claim in a state that is shut down because they will just tell me I am wasting their time and and some point they just won't even listen to us. There are lawyers who will tell you about where a statute of limitations wouldn't apply, there are states where it is extremely difficult to bring some of these claims. Everyone knows it. People are expecting a distribution along the lines of what they would get if they were in settlement discussions or a lawsuit. It was a balancing that took place. This was extremely difficult. The sources of payment are on this "like a tick on a dog". What can we get the bankruptcy court to approve? I wished every state passed a window, but the cards we are dealt have statutes of limitations and we are tring to accomdiate everyone. Rule 2004 motion that was granted. What does it mean? Century and Hartford and other carriers have alleged majority of claims are fraudulent. In pursuing that theory, they are taking discovery on claims aggregators. They broker your claim. They have a declaration from someone who worked in one of these boiler-room type places and that she got bonused on number of claims. There are instances of claim forms clearly problematic. One insurance company found 70 claims signed by the claimant, and ALL the signatures are identical. With a little smoke, they are claiming a massive fire. Judge has authorized insurance companies to demand documents and depositions from the aggregators. The insurers goal is to get the judge to believe the claims are not valid. The TCC is committed to vetting out false claims.

[CynicalScouter]

4 minutes ago, CynicalScouter said:

Normally, the TCC and other creditors would get 20 days to review that statement. We are obviously past that. Whether the BSA can do that, whether they can file something NOW without seeing the Plan 5.0 or disclosure statement and still expect to have a hearing on it for September 23 is TBD.

I want to tug at this. Past a certain point, the judge is NOT going to let BSA to drop a Plan 5.0 and not give parties some time to digest it. Yes, she can cut the days back to less than 20, but how much? The disclosure statement hearing is September 21 and the main hearing on the main plan the 23. As Stang pointed out, hard to read a disclosure statement without a plan, so both would have to be filed.

10 days prior is September 13 (Monday) if BSA were to drop plan 5.0 then, is that enough time? BSA will downplay everything, say the new plan is just "minor adjustments" to Plan 4.0 and the RSA, therefore everyone should be aware of what is going to be discussed. Etc.

[CynicalScouter]

4 hours ago, CynicalScouter said:

The Town Hall tonight. Surprise surprise. They caved on the RSA and they’ve caved on the soon to be unveiled Plan 5.0. Pathetic. Survivors deserved real advocacy. I’m afraid that the [REDACTED] pie is fully baked and ready for the survivors to eat. I’m so sorry.

I've now listened to the Town Hall. There was absolutely NOTHING about the TCC "caving" in Plan 5.0. All they said was Plan 5.0 was to be determined.

The only reason I can think Kosnoff concluded that "they’ve caved on the soon to be unveiled Plan 5.0" comes down to either

1) Stang was pretty clear that they are looking for a deal and Kosnoff wants BSA liquidated and nothing less and/or

2) The conversation about the reality of statutes of limitations. Kosnoff is on record in his Rule 2019 statement that he will never, ever accept statutes of limitations as the basis for denying victims 100% of recovery. And Stang made clear his view that was just not possible. It wasn't fair that statutes of limitations exist, but they were the reality/the cards that were dealt.

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/f26f9981-f41d-42bd-adbd-d7996d12f44f_5924.pdf
 

Quote

 

Mr. Kosnoff insisted -- and predicated his participation in the co-counsel arrangement -- on an agreement by the three participants to two bedrock principles:

(1) The three firms would oppose any settlement that distributes money to clients
based on the accident of geography or caprice of insurance coverage periods. That
is, if a client had been abused in a non-window state, his claim would not be reduced
on statute of limitations grounds. Rather, each victim’s claim should be evaluated
based on the abuse he experienced and the damages he sustained. Similarly, a
victim who was abused in a year where insurance happens to be exhausted or the
insurer is insolvent, his claims would be unaffected.

 

So, again, we go back to Kosnoff's grossly unrealistic demands:

1) BSA and LCs liqudated

2) All claims evaluated and funds distributed regardless of statutes of limitation.

[CynicalScouter]

 

[MattR]

@CynicalScouter, I keep moving your posts. Change threads