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Chapter 11 Announced - Part 8 - TCC Term Sheet & Plan Confirmation


Eagle1993

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BSA, TCC, FCR, Coalition, Ad Hoc LC Committee, Pfau/Zalkin reached agreement on this term sheet.  Please note that the CO Committees were not listed.  Other state court counsels also agree.

Link Here

Pfau/Zalkin & state court counsels will attempt to get their clients to change votes from Reject to Accept.

Changes to many sections (note this is current list/understanding, will clarify more in comments):

  • Definition of abuse claim and addition of a new "mixed claim" where mixed claims are claims of abuse in and out of scouting against an entity. 
  • Update to Trust Distribution and a new independent review process, paid by the claimant, that could lead to payouts equal to what they would have seen in state court.  
  • Chartered org settlement changes.  TCJC and Methodists are pretty much unchanged.  Other charters must pay to be in the settlement.
  • Insurers ... no major changes to settled insurers, except disagreement of Century regulatory finding.  Process laid out for new insurer settlements.
  • LC Settlement ... the additional LC/BSA payments added to protect COs will no longer protect COs.  They go to the plan.  
  • BSA ... will exit with less cash than prior versions.  Each month this goes on, they will exit with less (last plan actually had them exit with more the longer this went on).
  • No agreement on expert reports ... this will be discussed later.
  • YPT ... 72 hour rule gone in Scouts BSA (everyone registered).  More training for youth, leaders.  More reporting.  YPT leader to be hired.  Committees to be formed.  More supervision at bath/shower areas.  
  • Agreement on document sharing including IVF.
  • Update to settlement trust committee/leadership. 
  • Direct payments to Coalition, Pfau/Zalkin will be allowed, only to the extent to cover expenses related to restructuring.  To follow bankruptcy law.
  • TCC now supports plan (outside expert valuation part).  State Court counsels do as well, and will work on getting votes update.
Edited by Eagle1993
typo, removed emoji accidently added.
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26 minutes ago, Eagle1993 said:

YPT ... 72 hour rule gone in Scouts BSA (everyone registered).  More training for youth, leaders.  More reporting.  YPT leader to be hired.  Committees to be formed.  More supervision at bath/shower areas.  

Added YP commitments start at pdf page 30 of 46.

Edited by ThenNow
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If a claimant goes through the neutral party analysis, the assign away their rights to sue a CO and it looks like the trust can then sue that CO and its insurance company.  I'll need to read this 12 times to even start to understand it .... but it really appears that COs, who are liable, could have their insurance pulled in.  I can see why they did not sign on.

Note that if a CO rejects this plan, it appears they lose protection even post 1976 ... but still reading through this.

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Prof. Jacoby (@melissabjacoby) / Twitter has a tweet thread about this update.  Basically, there are still non-consensual non debtor releases.  She concludes:

Quote

#BoyScouts is (or should be) harder case for non-consensual releases because of nature of survivors' claims against released parties distinct from claims against nat'l organization.

That is the big question.  It is key that Zalkin & TCC are on board, and it should push acceptance to >>75%.  However, major hurdles to clear and I don't think many if any of the Trustee's objections have been addressed.  

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12 minutes ago, PACAN said:

Keep us posted.

Does this possibly mean that each CO will get a bill?  Lots will leave the program.

The Roman Catholic Church was very upset during the past couple of hearings.  The UMC and LDS didn't sign onto this updated plan.  I'll have to read this more later, but I think the BSA had to make a decision.  Save national & LCs and allow COs to get hit harder than the initial plan.

I would not be surprised to see many COs leave the program.  BSA should get ready for a new way to charter units.

Just my guess after reading through this once and seeing the Roman Catholic Church committee lawyer at a hearing.  To be fair, there is still a path for COs to settle, but it involves their insurance coverage and payment and if they vote against this they lose all protections.  It could get ugly unless I am misreading the updates.

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9 minutes ago, PACAN said:

Keep us posted.

Does this possibly mean that each CO will get a bill?  Lots will leave the program.

I don't think that the financial carnage is over.

The judge may end up having to choose which organization the judge leaves hanging-BSA or Catholic Church, or...???

I also suspect that even if the LC's get a third party discharge, if any major defendant is left facing state court suits, the LC's and BSA, though no longer liable for damages due to discharge, will still have to respond to subpoenas in state court cases as occurrence witnesses, endure discovery, etc.  All the while incurring defense costs. "Death by a thousand cuts." I think that BSA and the LC's only avoid the role of witnesses if all the major potential defendant groups are discharged.

I also wonder if the LC contributions are going to be increased.  Per the TCC council analyses, though some councils are barely hanging on as it is (and likely facing death by merger) others are flush.

It will be interesting to learn who blinked first.

Just some thoughts and questions. No answers here, sadly.

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24 minutes ago, SiouxRanger said:

I also wonder if the LC contributions are going to be increased.  Per the TCC council analyses, though some councils are barely hanging on as it is (and likely facing death by merger) others are flush.

 

Based on my read, the LC contribution remains unchanged, other than this:

Contributing Chartered Organization Settlement Contribution shall no longer result in the Other Chartered Organizations becoming Contributing Chartered Organizations under the Plan. The $15 million cash component of the Supplemental LC Contribution and the $25 million increase in the DST Note shall both be reallocated and become the consideration given for the extension of the preliminary injunction. The $100 million Settlement Growth Payment from the BSA and Local Councils shall facilitate the protections to certain Chartered Organizations under the Plan but shall not be reduced or credited.

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2 minutes ago, Eagle1993 said:

FYI ... I created a separate topic about YPT changes as those could drive a lot of discussions.

As a survivor and someone who was about to become involved in Scouting after a 42 year hiatus, I am very interested to hear from survivors and Scouters on these YP commitments. See you over there. Try not to get your feet tangled in the threads. 

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20 minutes ago, johnsch322 said:

I feel so let down.

On the monetary side or all of the above? I'm looking at the process of winding our claims through the Trustee process and feeling a bit queasy. $10,000 for an independent review. I'm not far into digesting any of it quite yet. Hang in there, Brother John.

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Just now, ThenNow said:

On the monetary side or all of the above? I'm looking at the process of winding our claims through the Trustee process and feeling a bit queasy. $10,000 for an independent review. I'm not far into digesting any of it quite yet. Hang in there, Brother John.

On the monetary side.  

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1 minute ago, johnsch322 said:

On the monetary side.  

When the "numerator/denominator" comment issued during the last TCC town hall, I was pretty sure more was not forthcoming. However, with your abuse and open state you will likely fair much better with the independent review process that's described. I think it would be worth a conversation with your attorney to better understand how it and the comparative negligence provisions apply to your case.  

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