Chapter 11 announced - Part 13 - Post District Court Affirmation

[ThenNow]

 

(Can't link to the full article bc of paywall.)

BREAKING: Boy Scouts Ch. 11 Plan Upheld On Appeal By Vince Sullivan A Delaware federal judge upheld the Chapter 11 plan of the Boy Scouts of America on Tuesday, saying he found no fault with the bankruptcy court's conclusion approving the plan to channel more than 82,000 claims of childhood sexual abuse to a $2.5 billion settlement trust, and that appealing insurance companies had not shown any clear error in the order confirming the plan.

Edited March 28, 2023 by ThenNow

[MYCVAStory]

And the answer to what happens next.... Fist let's see how long it takes the insurers to file a stay.

 

[Eagle1970]

14 minutes ago, MYCVAStory said:

And the answer to what happens next.... Fist let's see how long it takes the insurers to file a stay.

 

So, how many paths do insurers have before they run out of appeals, assuming the Supreme Court isn't interested?

[JBWest]

See the bottom of page 7:

"Finding no error in the Bankruptcy Court's legal conclusions either, I will affirm the Confirmation Order."

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/c44b0ea9-73ae-42bf-90e2-f6750105fbde_11057.pdf

[Eagle1993]

6 hours ago, Eagle1970 said:

So, how many paths do insurers have before they run out of appeals, assuming the Supreme Court isn't interested?

I think the big question is if a court issues a stay during the appeal to this decision (assuming there is one).  Without a stay, it is hard  to imagine an appeal not being moot. 

[SNEScouter]

15 minutes ago, Eagle1993 said:

I think the big question is if a court issues a stay during the appeal to this decision (assuming there is one).  Without a stay, it is hard  to imagine an appeal not being moot. 

For those following along at home, it seems like a good time for a look at Rule 8 of the Federal Rules of Appellate Procedure:

https://www.law.cornell.edu/rules/frap/rule_8

 

[PaleRider]

Reading that rule 8 was like me trying to read Japanese.Anybody want to break it down please.

[clbkbx]

Ouch. All that analysis for naught. 

[vol_scouter]

2 minutes ago, clbkbx said:

Ouch. All that analysis for naught. 

Slam!

[MYCVAStory]

3 hours ago, vol_scouter said:

Slam!

History fans are going to have a field day with this bankruptcy in hindsight.  In the case of the TCC estimate, it was both early on in the bankruptcy and included expectations for all insurers and SOL relief.  It should have been as high as possible at that point.  Should it be higher now?  Sure, but time will tell what percentage claims will be paid in the end.  As well, it's important not to cherry-pick statements as the objectors did.  The TCC didn't provide any expert testimony/evidence related to valuation at the plan confirmation hearing for one simple reason, the BSA, which the TCC and Coalition joined as plan supporters, provided it.   The Judge also cited the expert opinion of Bates as convincing so that move was the right one. The TCC at the beginning of the process and when it objected to the first plan did its analysis then as objectors.  Without it there would have been no valid basis to object and apply the needed pressure for increased LC or insurer contribution.  When you become supporters you toss aside that which no longer serves you. 

Edited March 29, 2023 by MYCVAStory

[MYCVAStory]

Another question is how long until the plan goes effective and what needs to happen before then.  A bankruptcy pro I spoke to today dumbed it down for me in a way I understood.  This is a lot like closing on your house.  You agree on a deal but now there's the sausage-making.  You need an appraisal, insurance, termite inspection, flood certification, mortgage approval, title search....and set a closing date for a month or two down the road hoping you can get it all done by then.  That's where we are.  The Trustee needs to have in place all the infrastructure to start this "not-so-small business.  That includes bank accounts, insurance, some professionals retained, and other parts of the backbone.  There's also a promissory note as part of this on the BSA/LC end I believe that needs to be finalized.  So, all of that gets put in place before the debtor says "Judge, here's the motion and proof showing we're good to go effective.  Release the Kraken" (Kraken part is mine.  I'm not so sure there's Latin for Kraken."  This is "scrambling the egg" in bankruptcy terms to get things going as quickly as possible so possible appeal avenues feel the pressure of the impracticality of "unscrambling the egg."  How long, a month or two if we're lucky and not massive impediments.  Objectors, especially the insurers, will try to hold this up because that's what they do.  But reading the District Court opinion it really puts the objectors on their heels and affirms strongly Judge Silverstein's opinion.  Objectors look for small cracks to wedge themselves into.  None were provided and while there's still battles ahead, for now Survivors who want this to move along should consider today at least a very good day.  Tomorrow....that might be another story!  Take victories where you can find them.

[MYCVAStory]

Mods.....Might be the right time to start a new topic such as "Post-District Court Affirmation"  or similar?

[SSScout]

Hey !  What about this couple hundred hectares over here...   It doesn't get used very often by ANYBODY, only during 3 or 4 months each year...  I bet we could find a condo builder, give us a good price....

[Eagle1970]

10 hours ago, MYCVAStory said:

Another question is how long until the plan goes effective and what needs to happen before then.  A bankruptcy pro I spoke to today dumbed it down for me in a way I understood.  This is a lot like closing on your house.  You agree on a deal but now there's the sausage-making.  You need an appraisal, insurance, termite inspection, flood certification, mortgage approval, title search....and set a closing date for a month or two down the road hoping you can get it all done by then.  That's where we are.  

Not to pin you down or anything.... But are you indicating there is a possibility this could wrap up this year??

[fred8033]

48 minutes ago, Eagle1970 said:

.... But are you indicating there is a possibility this could wrap up this year??

I'd take odds in Vegas against that, but then again ... What does "wrap up" mean ?  All legal challenges closed ?  First checks sent out ?   Checks outside the $3500 quick settlement sent ?  Complete wrap-up feels like it is years and years out.  I'm thinking 10 years plus before the trust is fully distributed.  Maybe next year for some checks.

Edited March 29, 2023 by fred8033