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


CynicalScouter

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On 10/8/2021 at 7:48 PM, MYCVAStory said:

The TCC has retained a firm to act as an expert witness and begin the process of valuing claims.  Claro has been used in many other cases to get an idea of values based upon historical settlements, SOLs, etc.  Remember thatthe TCC was trying to get an estimation motion" approved but was swimming upstream when the parties decided it would take too long.  So, if this plan has the votes or is close the TCC will potentially have the ammunition to demonstrate that the values are unreasonably being compensated too little

Is this a true deep dive analysis of each claim, read and reviewed with fresh eyes, or will they be using the already mined and compiled data? 

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1 hour ago, ThenNow said:

Is this a true deep dive analysis of each claim, read and reviewed with fresh eyes, or will they be using the already mined and compiled data? 

I would imagine a little of both. For example, Claro does not need to re-create a database with claims numbers, basic information, etc. It can take the existing data set and review for accuracy.

The real key is Bates White discounting vs. what Claro will come up with. How, for example, did it ever come up with $2.4 billion to $7.1 billion as the realistic payout range?

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/da60d7ce-df85-45e9-9737-4dd1a5d50014_6445.pdf

Bates Whites did a two step analysis: Valuation of claims and degree of BSA liability

Valuation was broken down into four categories

  1. those that affect the amount of damages
  2. those that affect the degree of accountability of the BSA based on any alleged connection with Scouting
  3. those that affect legal considerations regarding the viability of the claim
  4. those that affect the allowance and credibility of the Abuse Claim.

And BSA liability, the big issue is "whether the claim would be presumptively time-barred based on applicable law in the jurisdiction or jurisdictions in which each Survivor alleges abuse."

This is ALL a matter of professional opinion and interpretation. There's no way (other than maybe getting some kind of sample of 1000 cases and litigating them all out) to get anything close to a scientific sample here. This is all 100% opinion about how much each claim is valued at, given the above.

I would expect, however, Claro to come in on the highest of high ends here.

 

 

 

 

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1 hour ago, CynicalScouter said:

I would expect, however, Claro to come in on the highest of high ends here.

 

What is Bates White experience in other cases in terms of child sex abuse claims?  Claro seems to have a lot of experience in other cases.  I wonder if the judge will take that into account. 

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41 minutes ago, Eagle1993 said:

What is Bates White experience in other cases in terms of child sex abuse claims?  Claro seems to have a lot of experience in other cases.  I wonder if the judge will take that into account. 

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/806851_207.pdf

Quote

Bates White is an economic consulting firm that provides, among other things,
analytical services focused on the analysis and estimation of mass tort claims. The Debtors have selected Bates White based on its considerable experience with, and knowledge regarding, abuse
claims and valuation. In addition, this engagement is expected to be led by Andrew R. Evans, a
highly experienced expert. Similar engagements for which Bates White has provided services
include: In re USA Gymnastics, Case No. 18-09108 (Bankr. S.D. Ind. 2018): In re Bestwall
LLC, Case No. 17-31795 (Bankr. W.D.N.C. 2017); In re TK Holdings Inc., Case. No. 17-11375
(Bankr. D. Del. 2017); In re Garlock Sealing Tech. LLC, Case No. 10-31607 (Bankr. W.D.N.C.
June 5, 2010).

 

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Claims to be adjusted aaccording to the CLI

Trust Distribution Procedures).
b. Claims Matrix
The Claims Matrix establishes six tiers of Abuse Types, and provides the range of potential 
Allowed Claim Amounts assignable to an Allowed Abuse Claim in each tier. The first two 
columns of the Claims Matrix delineate the six possible tiers to which an Allowed Abuse Claim 
can be assigned based on the nature of the abuse. The Base Matrix Value column for each tier 
represents the default Allowed Claim Amount for an Allowed Abuse Claim assigned to a given 
tier, in each case based on historical abuse settlements and litigation outcomes which included 
release for all BSA-related parties, including the BSA and all other putative Protected Parties to 
such actions, prior to application of the Scaling Factors described in Article VIII.D of the Trust 
Distribution Procedures. The Maximum Claims Matrix Value column for each tier represents the 
maximum Allowed Claim Amount for an Allowed Abuse Claim assigned to a given tier after 
Claims Matrix review and application of the Scaling Factors described in Article VIII.C of the 
Trust Distribution Procedures. The ultimate distribution(s) to the holder of an Allowed Abuse 
Claim that has received a Final Determination may vary upward (in the case of a larger-than expected Settlement Trust corpus) or downward (in the case of a smaller-than-expected Settlement 
Trust corpus) from the holder’s Allowed Claim Amount based on the payment percentages 
determined by the Settlement Trustee. If an Allowed Abuse Claim would fall into more than one 
tier, it will be placed in the highest applicable tier. An Abuse Claimant cannot have multiple 
Allowed Abuse Claims assigned to different tiers. Commencing on the second anniversary of the Effective Date, the Settlement Trust shall adjust the valuation amounts for yearly inflation based Case 20-10343-LSS Doc 6445 Filed 09/30/21 Page 228 of 441
224 on the CPI-U. The CPI-U adjustment may not exceed 3% annually, and the first adjustment shall not be cumulative. 11 U.S. Code § 502 - Allowance of claims or interests | 

11 U.S. Code § 502 - Allowance of claims or interests | U.S. Code | US Law | LII / Legal Information Institute (cornell.edu)

enter the year(s) of abuse next.

https://www.aier.org/cost-of-living-calculator/

 

 

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5 hours ago, CynicalScouter said:

Valuation was broken down into four categories

  1. those that affect the amount of damages
  2. those that affect the degree of accountability of the BSA based on any alleged connection with Scouting
  3. those that affect legal considerations regarding the viability of the claim
  4. those that affect the allowance and credibility of the Abuse Claim.

Was the Bates White  analysis Re #2 strictly pertaing as to BSA or did it include the liability exposures of the LCs and COs which in many situation were much greater than BSA’s? Do you follow? 

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25 minutes ago, Muttsy said:

Was the Bates White  analysis Re #2 strictly pertaing as to BSA or did it include the liability exposures of the LCs and COs which in many situation were much greater than BSA’s? Do you follow? 

Yes, and I honestly don't know based on my read of the document. It's not clear one way or the other.

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4 hours ago, Eagle1993 said:

What is Bates White experience in other cases in terms of child sex abuse claims?  Claro seems to have a lot of experience in other cases.  I wonder if the judge will take that into account. 

Bates White, working on behalf of the DEBTOR, and in this case the RESPONSIBLE party, had every reason to lowball estimates.  Claro, working on behalf of the SURVIVORS....not so much.  This might put a very interesting perspective on things.

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Download the pdf, open it in a browser ( Phones will be too small to read, use a tablet or computer ). find on page "award". Do not add quotes when finding.

The Judge must follow this documents.

Federal Rules of Civil Proceedure

LOCAL RULES OF CIVIL PRACTICE AND PROCEDURE OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

 

 

 

 

Edited by leedavid815
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For those of you tracking the related Purdue Pharma case (in which third-party non-debtor the Sackler Family was allowed to be released from claims) the U.S. Trustee objected and filed an appeal.

The U.S. District Court has now issued a TRO (on a Sunday) to prevent implementation of the plan pending appeal.

 

Edited by CynicalScouter
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Here is a TCC Town Hall observation and a suggestion for the committee.

i don’t know who is compiling their written transcripts, but they are ridiculously slow. I could compile the transcript in just a few hours of typing. 

Are Zoom meetings limited to one hour only? If not, perhaps they can throw a few more dollars to Zoom to fully record the meeting!

i look forward to getting my packet and voting to REJECT the BSA plan. 

 

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1 hour ago, RobertCalifornia said:

i don’t know who is compiling their written transcripts, but they are ridiculously slow. I could compile the transcript in just a few hours of typing. 

My own experience with court transcripts and transcriptionists in general is: you pay for speed. If you want same day or day after, expect to pay huge premiums.

If you are willing to pay for "normal" processing (7-10 days) it is substantially less expensive.

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