Chapter 11 announced - Part 12 - District Court

[Eagle1993]

Now that the judge has confirmed the order, BSA plans to take the show to district court.  Feel free to discuss, but please keep this to the legal case only. 

[MYCVAStory]

Briefly.....

Appeals must be filed within 14 days.  This is basically an "I appeal" placeholder filed.

Parties discuss a suggested appeals process.  Documents, arguments, briefs, etc submissions are agreed upon. Or not.

Stipulation filed with the District Court regarding the appeals process for its agreement.  It can do its own thing as well.  Also District Court is MUCH different than Bankruptcy Cort.  IF there is testimony don't expect it to be on Zoom.  But, you can travel to beautiful Wilmington to see it!

Distrct Court places dates on the docket.  Right now it's all a guess but the District shouldn't be expected to take this up until closer to November.

By agreement at this point the plan is NOT effective OR funded in any form until District approval.  How long does that approval or rejection take after District review is completed?  NO ONE can accurately predict that right now without knowing the exact nature of any appeals and the extent of materials and testimony to be considered.

TCC has a Town Hall on 9/15 and hopefully will explain the process better.

[ThenNow]

15 minutes ago, MYCVAStory said:

NO ONE can accurately predict that right now without knowing the exact nature of any appeals and the extent of materials and testimony to be considered.

If he is willing, Eagle1993 would remind us of the timeframes for other cases, perhaps most relevant being Purdue. 

Edited September 8, 2022 by ThenNow
w not c

[RememberSchiff]

Are stays from the Bankruptcy Court still in effect during an appeal to District Court?

[ThenNow]

38 minutes ago, RememberSchiff said:

Are stays from the Bankruptcy Court still in effect during an appeal to District Court?

As I read the Code, the stays remain until the effective date. The plan cannot be implemented yet, so it makes sense to me. Confirmation is the beginning of the end for the debtor. Okay. I threw my dart and let's see where it landed. 

NB: I am not a bankruptcy attorney and do not play one on TV.

[ThenNow]

Two relevant news articles I've stumbled across. Ms. Kelly has covered the case since inception. (Not the film. That was 12 years ago. Hm. On second thought, that's a worthy note from where I sit.)

https://www.reuters.com/markets/rates-bonds/boy-scouts-path-exit-bankruptcy-following-sex-abuse-settlement-approval-2022-09-08/

https://www.usatoday.com/story/news/investigations/2022/09/08/boy-scouts-plan-exit-bankruptcy-historic-sex-abuse-case-ends/8023263001/

 

 

Edited September 8, 2022 by ThenNow

[Eagle1993]

2 hours ago, ThenNow said:

If he is willing, Eagle1993 would remind us of the timeframes for other cases, perhaps most relevant being Purdue. 

Purdue took about 3 months to see their settlement rejected in District court.   Then another 3 months for the bankruptcy judge to approve a modified plan. They were then heard by an appeals court in April and are still waiting on a decision. So, Purdue is at 1 year post initial plan approval.

My understanding is that the District court response was fast for Purdue.  

I'm setting an over/under plan effective date of 9 months (mid June 2023).  Just a wild guess.  That pains me as I hope it is faster, but looking at similarly complex cases it seems like this is going to take some time.  

[MYCVAStory]

21 hours ago, RememberSchiff said:

Are stays from the Bankruptcy Court still in effect during an appeal to District Court?

Yes.  The CRITICAL day is when the plan goes "Effective"; and the next step to that happening is District approval.  Nothing happens until then.   If not, then parties like the LCs would lose the injunction that is a part of the plan.  Unfortunately, lots of "BSA emerges from Bankruptcy" headlines are giving the wrong impression.

[RememberSchiff]

3 hours ago, MYCVAStory said:

Yes.  The CRITICAL day is when the plan goes "Effective"; and the next step to that happening is District approval.  Nothing happens until then.   If not, then parties like the LCs would lose the injunction that is a part of the plan.  Unfortunately, lots of "BSA emerges from Bankruptcy" headlines are giving the wrong impression.

So will National now have to pay cash on the barrel for business transactions?  

A year ago in Ellis vs. Westinghouse Electric,  the  Third U.S. Circuit Court of Appeals Judge Ambro issued this opinion:

"...But what if the claim arose after a plan was confirmed and before it goes into effect? To our knowledge, no federal appellate court has directly addressed this issue. We hold that sections 503 and 1141 of the Bankruptcy Code authorize bankruptcy courts to set and enforce bar dates for administrative expense claims, including claims arising after confirmation of a plan but before its effective date. The holder of a post-confirmation administrative expense claim cannot choose to bypass the bankruptcy process, so if the claim is not timely filed by the bar date, it faces discharge like a pre-confirmation claim."

Edited September 9, 2022 by RememberSchiff

[MattR]

18 hours ago, RememberSchiff said:

So will National now have to pay cash on the barrel for business transactions?  

Can they at least stop paying everyone's legal fees? Or maybe less of them?

[RememberSchiff]

3 minutes ago, MattR said:

Can they at least stop paying everyone's legal fees? Or maybe less of them?

Prior business doubtful. Seemingly new business between confirmation and effective date,  the new creditors (contractors, suppliers, attorneys) would have more than the usual hard time collecting payment from a debtor in bankruptcy.

[fred8033]

On 9/9/2022 at 3:36 PM, RememberSchiff said:

So will National now have to pay cash on the barrel for business transactions?  

A year ago in Ellis vs. Westinghouse Electric,  the  Third U.S. Circuit Court of Appeals Judge Ambro issued this opinion:

"...But what if the claim arose after a plan was confirmed and before it goes into effect? To our knowledge, no federal appellate court has directly addressed this issue. We hold that sections 503 and 1141 of the Bankruptcy Code authorize bankruptcy courts to set and enforce bar dates for administrative expense claims, including claims arising after confirmation of a plan but before its effective date. The holder of a post-confirmation administrative expense claim cannot choose to bypass the bankruptcy process, so if the claim is not timely filed by the bar date, it faces discharge like a pre-confirmation claim."

BSA should already be paying cash for new expenses.  I thought up-front paying of new expenses was common for companies in bankruptcy proceedings.

My question had to do with claims failed between the claim deadline and BSA emerging bankruptcy.  Is it possible those victims will have less recourse for their damages?  I'm hoping the newly established trust allow new victims to submit claims on equal footing with the submitted 80,000+ submitted claims.  Otherwise, it feels like there is a gap that removes victim recourse.

[clbkbx]

18 hours ago, fred8033 said:

My question had to do with claims failed between the claim deadline and BSA emerging bankruptcy.

Not certain this answers your question but you might look at the role of the Future Claimant’s Representative. They (at least) represent people who haven’t filed a claim due to age or repressed memories. 

[fred8033]

4 hours ago, clbkbx said:

Not certain this answers your question but you might look at the role of the Future Claimant’s Representative. They (at least) represent people who haven’t filed a claim due to age or repressed memories. 

Ahhh... Thank you.  This was a new way of asking a previous question.  Now I'm connecting it with a previous answer.  THANK YOU !!!!

[MYCVAStory]

Attorney forwarded this:

NOTICE OF SEPTEMBER 15, 2022 VIRTUAL TOWN HALL MEETING
HOSTED BY THE OFFICIAL TORT CLAIMANTS’ COMMITTEE
PLEASE TAKE NOTICE that the Official Committee of Tort Claimants’ will hold a meeting regarding the confirmation or approval of the Boy Scout’s Plan of Reorganization on September 15, 2022 at 8:00 p.m. (ET). The details for the next meeting are below.

PLEASE TAKE FURTHER NOTICE that the Tort Claimants’ Committee will hold a virtual town hall meeting on September 15, 2022 at 8:00 p.m. (Eastern Time).
Zoom: https://pszjlaw.zoom.us/j/82272826295 (no registration required)  Dial-In by Telephone: 888-788-0099 (Toll Free), Webinar ID: 822 7282 6295. If asked
for a “Participant ID,” just press #