Chapter 11 Announced - Part 6 - Plan 5.0/TCC Plan TBD

[ThenNow]

10 minutes ago, Eagle1993 said:

I'll try to not guess nefarious motivations. Here is where I think the two sides are...

I understand, but all of your (very) good analysis and recap isn't my point. I said that because:

1) They implied the TCC has "no" plan, but the Coalition does. CS, we're not talking about a technicality here, we're talking playing to the public with baldfaced, unsubstantiated accusations against the Official Tort Claimants Committee by way of a "get the vote out" PR effort. I've worked campaigns. I've overseen direct mail. This is crystal clear as to motive and intent;

2) They pretty much stated that they built the plan with their own well lotioned and manicured fingers. Pah-lease. They may have bellied up and said they're all-in when they were getting the fees, but let's see what happens soon; and

3) This is self-promotion, TCC condemnation by implication and fraudulent juxtaposition. Totally misrepresents the facts. Terrible. Run for office and do this. Don't represent child sexual abuse victims and then attack their court appointed "guardians" and advocate, and wrongly I might add.

[CynicalScouter]

BSA has now filed the latest amended version of Modified Plan 5.0/Plan 5.5 (I prefer to call it 5.5 and will continue to to do so) and associated documents

To repeat/reiterate the key dates

• Solicitation Date is October 15.
• Voting Deadline is December 14.
• PRELIMINARY Vote Reporting Deadline is December 21.
• FINAL Vote Reporting Deadline January 4.
• Confirmation Hearing January 24.

Which means realistically that right around Christmas we'll know if the plan has been rejected or not and by how much. It will also give BSA roughly 30 days to decide what it wants to do at the confirmation hearing if it loses that vote: ask the judge to cramdown Plan 5.5 anyway? BSA-only/toggle? Etc.

In the mean time, confirmation objections, briefing, and discovery will be ongoing. I expect there to be knock down drag out fights (here's my prediction: mediation privilege will come up early and often).

 

 

 

[Eagle1993]

1 minute ago, ThenNow said:

This is self-promotion, TCC condemnation by implication and fraudulent juxtaposition. Totally misrepresents the facts. Terrible

I don't disagree.  From what I heard, I would estimate 75%+ of the words spoken by coalition lawyers were about themselves and not claimants.  Personally, I would have either gone with no lawyer or hired a lawyer outside the coalition by now.

[ThenNow]

1 minute ago, Eagle1993 said:

I don't disagree.  From what I heard, I would estimate 75%+ of the words spoken by coalition lawyers were about themselves and not claimants.  Personally, I would have either gone with no lawyer or hired a lawyer outside the coalition by now.

Thanks for saying that. I respect you, appreciate you, value all your input and analysis, and support for victims. That press release made me very angry. Did someone say something about "decades of pent-up rage"? Hm...

[Eagle1993]

2 minutes ago, CynicalScouter said:

• Confirmation Hearing January 24.

 

Starts January 24. 😀

I wouldn't be surprised that this takes months of hearings.  

The disclosure statement had very few substantial changes.  Most of the major fights were pushed to confirmation.  There are MANY issues to be addressed during confirmation.  Each one could take days of hearings.  The judge can't meet every day (she has other hearings).  I can't over state this ... the confirmation will take a huge about of time ... so much so it could put BSA survival at risk.

Even this assumes nothing shocking comes from the vote or discovery.  If something comes up there ... Chapter 7 or a BSA only plan.

[CynicalScouter]

28 minutes ago, ThenNow said:

They implied the TCC has "no" plan, but the Coalition does.

Yep. And as you said, this is now a "campaign". I've never seen this before in state civil courts. Maybe this happens in the mass torts (asbestos?) but I've not been privy to those.

And if it is a campaign, here is where the TCC needs to not wait for the exclusivity deadline to file something. They need to post to the court's docket now what that plan will be. Give victims a "vote to reject and this is what we have waiting to go out the door on January 4 (deadline for final voting tallies to be reported)." Or they can post to the TCC website "this is our plan".

 

Edited September 30, 2021 by CynicalScouter

[ThenNow]

10 minutes ago, MYCVAStory said:

Like I said, I have a hunch the TCC isn't going to sit back for that. 

Is there any reference point to something like this happening in another case? They are literally self-promoting their position (self) to the detriment and diminishment of the TCC's view, analysis and position. If you don't have a good product, paint the other guy stupid and lazy...

[ThenNow]

16 minutes ago, CynicalScouter said:

the TCC needs to not wait for the exclusivity deadline to file something

Agreed. I think Jim Stang has now got his dander fully up and my guess is it's a mirror image (or understated) of the same condition among the TCC members. Btw, is Ken Rothwieler on the TCC? His dander seems to be raised, as well. Oh, that's right. Maybe it's that the fee thing and the aftermath of getting skinned by the aforementioned Mr. Stang. ("Did it stang when he did that?" he asked with a southern twang.)

Edited September 30, 2021 by ThenNow

[CynicalScouter]

3 minutes ago, Eagle1993 said:

There are MANY issues to be addressed during confirmation.  Each one could take days of hearings.  The judge can't meet every day (she has other hearings).  I can't over state this ... the confirmation will take a huge about of time ... so much so it could put BSA survival at risk.

I wish I had the transcript, but the attorney for BSA (male, not Lauria, forget his name, Mr. "Melting Ice Cube" for now) rattled off numbers that

1. BSA would be running out of cash in 1Q 2021 (I recollect March?)
2. COMPLETELY out by May 2021, meaning it would have NO cash to offer into a settlement by that point

He gave specific numbers/amounts. The broader point is this

1. I don't believe him anymore. Too many times crying wolf.
2. It is a truism that at some point BSA will be out of cash.
3. How long BSA can bleed out is at best TBD.

One final point on this and you nailed it:

6 minutes ago, Eagle1993 said:

Even this assumes nothing shocking comes from the vote or discovery.  If something comes up there ... Chapter 7 or a BSA only plan.

Confirmation moves a LOT faster if the LCs, COs, LDS, and everyone else are tossed out of the boat and BSA fends for itself due to a vote to reject (or a vote not to accept/failure to get 67%). The insurers will still squawk about some things, but you eliminate several lines of challenges (the entire third-party-non-debtor-releases) if you make this BSA only.

 

[RememberSchiff]

18 hours ago, CynicalScouter said:

Judge wants note right on the front on ballot: "This ballot being used for multiple things" and then listing those  things (she thinks 3 things).

1. Yes/No on plan
2. Electing for $3500
3. Approving releases

Could the TCC request another note on front of ballot?

As this ballot is being mailed, an alternate plan from the TCC is being discussed by the Court. Vote No if you prefer to wait for the release of the TCC plan.

or something to that effect.

Edited September 30, 2021 by RememberSchiff

[CynicalScouter]

5 minutes ago, RememberSchiff said:

Could the TCC request another note on front of ballot?

As this ballot is being mailed, an alternate plan from the TCC is being discussed by the Court. Vote No is you prefer to wait for the release of the TCC plan.

I extremely doubt that the court will allow a speculative statement (there is a plan "being discussed"). I know based on my review that have been times where dueling plans were sent out (vote for Plan 1 or Plan 2) but that time has passed and BSA is going to get its plan out the door to vote before the TCC can get its plan formally before the court.

That said, the TCC's letter will likely be amended to include "we have a plan".

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/ccb69c72-6cc4-49ce-9153-1f417e8943fb_6365.pdf

Right now, the closest thing they have in that letter is

Quote

If a sufficient number of survivors vote to reject BSA’s Plan, then the possible outcomes include (i) BSA’s case may be dismissed and survivors may be free to pursue claims against BSA, Local Councils, Chartered Organizations and other parties subject to applicable statutes of limitation; (ii) the Court may appoint a trustee for BSA; (iii) the TCC (or other parties) may submit an alternate plan to reorganize BSA; or the BSA may amend its Plan and seek to resolicit votes to accept or reject such amended plan

I would boost that to

Quote

the TCC WILL submit an alternative plan

or

Quote

the TCC WILL ask to court to send out its alternative plan (see tccbsa.com for details of this plan)

 

Edited September 30, 2021 by CynicalScouter

[Eagle1993]

Note that BSA's monthly operating report should be posted later today.  This will cover their position at the end of August.  What will be interesting, is this is the first month (August) where they entered with almost no liquidity left in their Unrestricted Endowment Balance (only $9,000).  At the beginning of the year, they had $55M.

Now, since the start of the year, they haven't touched their Unrestricted RBT Balance.  Does anyone know what the RBT balance is?  I wonder if they start taping into that.  Otherwise, I expect the liquid cash balance to start dropping rapidly.

 

[MYCVAStory]

4 minutes ago, CynicalScouter said:

I extremely doubt that the court will allow a speculative statement (there is a plan "being discussed"). I know based on my review that have been times where dueling plans were sent out (vote for Plan 1 or Plan 2) but that time has passed and BSA is going to get its plan out the door to vote before the TCC can get its plan formally before the court.

The TCC can't "solicit" for a plan that hasn't been filed, and it can't be filed until exclusivity ended.  The judge screwed them on this to get the BSA's plan out the door.  This will come up in October.  In the mean time it CAN say that it has a plan prepared.  What it doesn't say is that it has "deals" with insurers.  So, it needs to make teh case that the "deals" in place are garbage.  That shouldn't be hard.

[CynicalScouter]

4 minutes ago, Eagle1993 said:

Does anyone know what the RBT balance is?

Retirement

Benefits

Trust

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/799079_13.pdf

Quote

The BSA maintains 10 investment accounts to invest the BSA’s working capital and other funds awaiting disbursement or other use in the Cash Management System, as well as certain funds held in trust for related non-debtor entities (the “Investment Accounts”). Specifically, the BSA maintains the following Investment Accounts: two accounts that invest discretionary funds designated by the Board, for the benefit of the Boy Scouts of America Retirement Benefits Trust (the “Retirement Benefits Trust”), which funds may be used supplement the funding of the BSA’s retirement plans (the “RBT Investment Accounts”);

 

[ThenNow]

I want to apologize to any of my fellows who are represented by the Coalition firms. My intention is not to attack you or their work for you. All I see is what they are doing publicly (press), in court (hearings) and via their filings (OmniAgent Docket). Taken as a whole, I cannot help but react as I am, given the apparent self-interested motivations of counsel, the willingness to undermine the TCC, their efforts to get the estate (BSA/victims funds) to pay their attorneys, all topped off with the histrionics I’ve witnesses. I hope all goes well for you and all of us, but I am unable to keep quiet at this point. I feel they have attacked me by attacking my family. I have a strong penchant to “protect the blindside.”