Chapter 11 announced - Part 12 - District Court

[MYCVAStory]

The substantial contribution hearing to address the Coalition, Pfau/Zalkin and Catholic requests to have their bills paid by the BSA has been rescheduled to 3/23:

Docket Text:
Notice of Hearing /Re-Notice of Motion of the Coalition of Abused Scouts for Justice for Entry of an Order Approving the Debtors' Proposed Payment of the Coalition Restructuring Expenses (related document(s)[10808]) Filed by Coalition of Abused Scouts for Justice. Hearing scheduled for 3/23/2023 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #2, Wilmington, Delaware. Objections due by 1/12/2023.

[MYCVAStory]

RE the BSA going Chapter 7, that's HIGHLY unlikely under the relative progress of the current plan.  The "heavy lifting", as in lawyers and professionals working and running up bills, has been done to a large extent.  Continued drain will be painful but not unsustainable for the period of time while this works its way through the courts.  IF, the plan is completely tossed out it's going to be tough for the BSA to start over but the big issue is the importance of the third-party releases as they relate to the over 1,000 charter orgs.  The LC's have said, and said in District Court, that CO releases must be a part of a plan and if that leg of the stool is removed then it all falls apart.  That would make for a very interesting game of chicken if the court granted releases to the LCs but NOT the charter orgs. 

LOTS and lots of "what ifs" right now.  Always good to consider them but there also comes a time for me when I must focus upon what is rather than what might be.

[Eagle1970]

On 2/15/2023 at 5:57 PM, MYCVAStory said:

LOTS and lots of "what ifs" right now.  Always good to consider them but there also comes a time for me when I must focus upon what is rather than what might be.

I'm right with you.  But I also need to focus on what might be, so that I face no further disappointment on this matter.

[MYCVAStory]

13 minutes ago, Eagle1970 said:

I'm right with you.  But I also need to focus on what might be, so that I face no further disappointment on this matter.

There's a lot to be said about that approach.  When so much is unpredictable it's good to avoid surprise and sometimes it works as well to expect the worst and be pleased when that doesn't happen!  Hang in there.

[Eagle1970]

As this drags out, the state where my abuse occurred, Missouri, has this going on:

https://missouriindependent.com/2023/02/14/kanakuk-abuse-survivors-urge-missouri-lawmakers-to-extend-statute-of-limitations/

And Ohio has this going on:

https://ohiocapitaljournal.com/2023/02/22/new-bill-allows-boy-scouts-sexual-abuse-victims-to-maximize-settlement-claims/

I wonder if the Matrix will get another look.  If any of these open a window, that fact could certainly be argued in the individual cases, my non-legal brain hopes.

 

[RememberSchiff]

On 2/7/2023 at 5:51 PM, Eagle1993 said:

Low chance ... even after they burn through their own cash, National BSA can definitely pull money from councils.  Ch7 is a disaster.

Found these on the BSA Annual Report webpage.

2023: January CEO Flash    (CONSOLIDATED STATEMENT OF REVENUES AND EXPENSES, period ending Jan 31, 2023)

2022: December CEO Flash   (CONSOLIDATED STATEMENT OF REVENUES AND EXPENSES, period ending Dec 31, 2022)

 

[johnsch322]

Advance funding for getting settlement trust started.

a8b7ab66-3106-4bdc-ad71-9e2a56280983_11010.pdf (omniagentsolutions.com)

[MYCVAStory]

11 hours ago, johnsch322 said:

Advance funding for getting settlement trust started.

a8b7ab66-3106-4bdc-ad71-9e2a56280983_11010.pdf (omniagentsolutions.com)

Clif notes.....

BSA is trying to start scrambling the egg so that the certain insurers and other objectors can say "Look court/judge, this is up and operating and the prep is underway so that awards can be made when the Trust is funded.  Can't unscramble the egg now"  That's important pressure and VERY good news for Survivors because if this doesn't get dragged out the time-to-awards will be shortened compared to everything administrative waiting for a start when all appeals have run out.  Interesting.....motion is for BSA to contribute 1 million dollars and TCC's attorneys PSZJ to contribute 2.9 to 3.2 million.  The PSZJ money is coming from the 10% of its fees it pledged at the start of the Bankruptcy to go to the Trust and has been kept in escrow until now.  Oh, and the Coalition's attorneys Brown-Rudnick....support for this motion but NO financial contribution.  What a shame.  Their hearing to receive a 25 million dollar "substantial contribution" from the BSA was pushed to March.  Seems like a missed opportunity to pledge 2.5 million and show the Judge its level of commitment and contribution.  You know, you always find out who your friends are when the check comes and it's time to split it.  The people who really care about you always reach for their wallets.  The others see the check approaching and head for the bathroom.

 

[Eagle1993]

9 hours ago, MYCVAStory said:

Clif notes.....

BSA is trying to start scrambling the egg so that the certain insurers and other objectors can say "Look court/judge, this is up and operating and the prep is underway so that awards can be made when the Trust is funded.  Can't unscramble the egg now"  That's important pressure and VERY good news for Survivors because if this doesn't get dragged out the time-to-awards will be shortened compared to everything administrative waiting for a start when all appeals have run out.  Interesting.....motion is for BSA to contribute 1 million dollars and TCC's attorneys PSZJ to contribute 2.9 to 3.2 million.  The PSZJ money is coming from the 10% of its fees it pledged at the start of the Bankruptcy to go to the Trust and has been kept in escrow until now.  Oh, and the Coalition's attorneys Brown-Rudnick....support for this motion but NO financial contribution.  What a shame.  Their hearing to receive a 25 million dollar "substantial contribution" from the BSA was pushed to March.  Seems like a missed opportunity to pledge 2.5 million and show the Judge its level of commitment and contribution.  You know, you always find out who your friends are when the check comes and it's time to split it.  The people who really care about you always reach for their wallets.  The others see the check approaching and head for the bathroom.

 

I was wondering when BSA was going to start this process.  I question if it would have any impact on the district court, but I know some professors/reporters on bankruptcy have stated appeals can run into trouble if the court determines the appeal is moot.  As you state, if BSA basically says there is no other path left because everyone already paid into the plan and the plan started, the court (unless it acts quickly) would kill the appeal even if it could have some merits. I guess the risk would be if the court tells BSA too bad, you shouldn't have started, but BSA would be in serious trouble regardless, so it is pretty much 0 risk for starting it now.

I think this might also be a sign that BSA is assuming district will confirm the plan.  With the announcement of Mosby's retirement, start of the trust ... I believe BSA has decided to start implementing their exit strategy.

Finally ... fully agree this is good for survivors.  The alternative to the current plan is endless lawsuits, less money and lack of resolution.  

[MYCVAStory]

2 hours ago, Eagle1993 said:

I think this might also be a sign that BSA is assuming district will confirm the plan.  With the announcement of Mosby's retirement, start of the trust ... I believe BSA has decided to start implementing their exit strategy.

Just to be clear, the only thing being proposed to the court is the start of the "administrative side" of the Trust.  This is so that Judge Houser can start working (she has already accrued hours) and start to put in place the professionals that will provide the infrastructure for claims management, questionnaire construction, money management, independent review and all the rest.  There will still be significant delays but at least if the plan and Trust go active at some point then some legwork will have given it a bit of a head start.

 

[PaleRider]

What does questionnaire construction mean? 

On 2/15/2023 at 3:29 PM, Eagle1993 said:

BSA will not go Ch 7.  Based on their most recent cash burn they can last over a year without looking at Ch7.  Even after that year they could get more money from councils, etc.  Ch 7 is utter disaster.  BSA trademarks and program materials would be sold.  All properties sold. There are legal arguments that would be pursued to pull in all council assets.  Then CO and LCs would be sued.  BSA would likely not survive.  Ch 7 was a threat to get approval of a plan. 

If it does happen, who knows the outcome for claimants financially.  I think it would be bad for everyone excluding those who simply want BSA to die as they would likely get their wish. 

 

[MYCVAStory]

9 hours ago, PaleRider said:

What does questionnaire construction mean? 

The claim form was only to make a claim and allowed the debtor to get a better picture of where the abuse occurred, severity, etc.  In mass tort bankruptcy Trusts there will be a questionnaire that will ask for a ton more detail, any medical records, evidence, etc.  The trust will need to hire professionals with experience in developing this form for sexual assault, then retain professionals to process all of them and wade through the materials....  It's going to be difficult for many Survivors but the closest comparison would be the discovery phase of a trial.  Hopefully the Trust will communicate well with Survivors on instructions and processes.  If a Survivor retained an attorney they are going to find out quickly how much help that attorney is going to be.  Remember as well that Judge Silverstein dictated that she needs to approve the fraud prevention steps the trust will follow.  Be on the lookout for attorneys who scream "we need to get money into the hands of Survivors as quickly as possible."  If I'm getting 40% then I'd want the same.  If you're a Survivor you want awards going to CREDIBLE claims.  The tricky part for the Trust, and why the questionnaire is the first critical step is because at some point it's going to take too long and cost too much money to validate a claim.  The Trust needs to balance speed and validation.  Sorry, probably more than just an answer to what questionnaire construction is.

[Eagle1993]

53 minutes ago, MYCVAStory said:

The claim form was only to make a claim and allowed the debtor to get a better picture of where the abuse occurred, severity, etc.  In mass tort bankruptcy Trusts there will be a questionnaire that will ask for a ton more detail, any medical records, evidence, etc.  The trust will need to hire professionals with experience in developing this form for sexual assault, then retain professionals to process all of them and wade through the materials....  It's going to be difficult for many Survivors but the closest comparison would be the discovery phase of a trial.  Hopefully the Trust will communicate well with Survivors on instructions and processes.  If a Survivor retained an attorney they are going to find out quickly how much help that attorney is going to be.  Remember as well that Judge Silverstein dictated that she needs to approve the fraud prevention steps the trust will follow.  Be on the lookout for attorneys who scream "we need to get money into the hands of Survivors as quickly as possible."  If I'm getting 40% then I'd want the same.  If you're a Survivor you want awards going to CREDIBLE claims.  The tricky part for the Trust, and why the questionnaire is the first critical step is because at some point it's going to take too long and cost too much money to validate a claim.  The Trust needs to balance speed and validation.  Sorry, probably more than just an answer to what questionnaire construction is.

Will this form apply to the $3500 quick payout option?  I'm curious how that will be handled.

[MYCVAStory]

2 hours ago, Eagle1993 said:

Will this form apply to the $3500 quick payout option?  I'm curious how that will be handled.

To be determined.  There is a part of our population that will "sign up" for any mass claim action.  It's sad: https://topclassactions.com/ Anyway, what the Trust will do to address this is TBD but at some point it has to decide how long it'll work on each $3500 before it isn't cost effective.

 

[BadChannel70]

The new BSA Claims Administrator, Randi Roth, who was the Claims Administrator in United States v. Farid Fata (Eastern District of Michigan), March 2016 – 2019, assisted the Department of Justice with the claims review process in that case. You can view an archive of the claim portal/process here:  U.S. v. Fata - Home (justice.gov)

I suspect rather than re-inventing the wheel, survivors will see a similar claims portal and processes.

Now what happens when we all get through "all appeals exhausted" the non-settling insurers decide to file bankruptcy themselves?

Edited March 3, 2023 by BadChannel70