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Chapter 11 Announced - Part 9 - Confirmation Hearing


Eagle1993

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23 hours ago, MattR said:

This thread has been locked until tomorrow morning. I asked nicely for people to get back on topic. As court is not in session, there's nothing to talk about so this shouldn't be a problem. If this makes no sense to you then please read my previous post.

Locked again.

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Monday hearing observations: 

Guam:  Throw everything at the wall and hope something sticks.

Settling Insurers:  This is how you clean the wall.

Girl Scouts:  We may have just lost our trademark case against the BSA via a summary judgement but we don't agree so just ignore all of that.

Judge"  Quietly thinking to herself "This is a day I'll never get back."  Saying out loud: "Okay, I want to wrap this up tomorrow."

US Trustee:  Time to break out my even fancier tie because tomorrow's about third-party releases and it's GO TIME!

Boy Scouts Attorneys:  Yes, your honor, if everyone will just be nice and not object too much we can wrap it up tomorrow.

Everyone else:  Nice try.

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3 hours ago, MYCVAStory said:

Guam:  Throw everything at the wall and hope something sticks.

I have yet to see a single one of their arguments land.  I think at one point Wollf talked for an hour (perhaps it was less, but it seemed like an hour).  No questions from the judge just a thank you.  The times I see a lawyer winning some points is when I see the judge more engaged.  If you talk for an hour and just get a thank you ... To be fair, the DOJ also typically just gets thank yous but at least he only talks for 5 mins. 

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3 hours ago, MYCVAStory said:

Girl Scouts:  We may have just lost our trademark case against the BSA via a summary judgement but we don't agree so just ignore all of that.

Judge seemed very sympathetic to their points and didn't like BSA's response.  Basically the GSUSA is expecting at least $17M.  The insurance BSA set aside for them has limitations that will likely prevent that payout (even if GSUSA wins in court).  BSA's point is their case sucks and there is no chance they are going to win. The judge basically that may be true but you still need to be ready in case they do win.  Or.. she may just say district court's decision makes it highly unlikely for GSUSA to win so let's move on.  

 

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17 minutes ago, Eagle1993 said:

Judge seemed very sympathetic to their points and didn't like BSA's response.  Basically the GSUSA is expecting at least $17M.  The insurance BSA set aside for them has limitations that will likely prevent that payout (even if GSUSA wins in court).  BSA's point is their case sucks and there is no chance they are going to win. The judge basically that may be true but you still need to be ready in case they do win.  Or.. she may just say district court's decision makes it highly unlikely for GSUSA to win so let's move on.  

 

If BSA was an ongoing concern, they would have had to list the GSUSA lawsuit as a contingent liability on their balance sheet while it was still undecided in District Court.  Once they lost there it would probably drop from the balance sheet but still be listed in a footnote.

I don't know how that translates in a bankruptcy case.  It would be legal malpractice for their lawyers not to argue for some money being set aside, but they really shouldn't be surprised if it doesn't happen, or if the money set aside is very small.

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In court, BSA lawyer said it is critical for BSA to exit bankruptcy by summer as they run completely out of liquidity by then.  They have agreement to receive a loan (I believe from a trust) to deal with their cash flow ... however, that can only occur if BSA exits bankruptcy.

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1 hour ago, Eagle1993 said:

They have agreement to receive a loan (I believe from a trust) to deal with their cash flow

I believe Ms. Lauria said a "foundation," but I didn't hear any elaboration. Could be wrong. I'm highly skilled in that area. 

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I think there could be a major issue.  TCJC releases.  What if you have a Ward leader who abuses a youth within the Ward as both a Scoutmaster and a leader within the ward.  The TCJC believes this bankruptcy deals in total with that youth (since it involved scouting at some point).  It is not clear that can be allowed.  TCJC said they would never contribute the amount they did if that isn't the case.  

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I really question this for TCJC.  Basically, nearly every single boy in LDS was a scout.  Since all LDS wards were COs, I wonder if TCJC sees this as a path to deal with 100% of all male sex abuse.  The judge needs to be careful here ... LDS is very unique.

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