Chapter 11 announced - Part 14 - Plan Effective

[Eagle1970]

My claim was reduced by 90%, so I'm not getting much anyway.  But all this talk about claims being paid at 100% look like intentionally false statements.  50% funding would have been bad, but at least something.  But this may end up at 15%.  How could they possibly get it so wrong?

[Tron]

On 2/6/2025 at 9:34 PM, Eagle1970 said:

My claim was reduced by 90%, so I'm not getting much anyway.  But all this talk about claims being paid at 100% look like intentionally false statements.  50% funding would have been bad, but at least something.  But this may end up at 15%.  How could they possibly get it so wrong?

Did the lawyers get it wrong or were they being disingenuous?

[skeptic]

5 hours ago, Tron said:

Did the lawyers get it wrong or were they being disingenuous?

Key word:  Lawyers.  Enough said.

 

[Muttsy]

Tim Kosnoff is an attorney and he called it a b.s. settlement (he actually called it “sellout” not a settlement. Fools believed the unbelievable. A “substantial” majority of survivors voted to approve it. 
 

If you voted for it, look in the mirror for who to blame. Of course, those lawyers were lying. But it was all there in black and white. What a fool believes—he sees. 

[johnsch322]

49 minutes ago, Muttsy said:

Tim Kosnoff is an attorney and he called it a b.s. settlement (he actually called it “sellout” not a settlement. Fools believed the unbelievable. A “substantial” majority of survivors voted to approve it. 
 

If you voted for it, look in the mirror for who to blame. Of course, those lawyers were lying. But it was all there in black and white. What a fool believes—he sees. 

I for one voted no both times. 

[Eagle1970]

I also voted no.  As soon as I learned that my claim would be mostly wiped out by the Matrix SoL, there was no point in supporting it.  Then, to make matters worse, although I submitted a lot of case law the administrator reduced the claim as much as possible.  The matrix had made the state where my abuse occurred a 10-25% factor.  You guessed it...she used the 10 and wouldn't begin to adjust it in "reconsideration".  The whole thing is a sham.

[Muttsy]

Everybody should be rooting for the 3rd Circuit to reject the BSA’s equitable mootness argument. With that done, the plan is effectively finished because of Sackler ruling rejecting non-consensual third party releases. Century Chubb and the other settling insurers will pull their contributions to the ST which will be kaput. So then…it will get interesting. Kosnoff has been floating some possibilities all of which are much better than this POS the TCC and the all corrupt law firms foisted on the survivors. 

[Eagle1970]

I had read that if the Third Circuit tosses the Trust, most of us get nothing.  I can't find any detail online regarding Kosnoff's plan if it is rejected.  Can you elaborate?

[Muttsy]

That’s the propaganda being spouted by Doug Kennedy and the cabal of lawyers who stand to make hundreds of millions if it is upheld while their clients get bupkis. Kennedy has already cashed in by settling his Catholic Church part of the case for millions. The delay in finalizing the plan was delaying his real payday. 
 

Kosnoff’s vision is based on a couple of things  One is the liquidation of BSA’s assets in a Ch 7 or liquidating Ch 11 after the plan is overturned. The ample insurance policies survive BSA’s demise and are the most valuable assets of BSA and the locals and sponsors. Expect those entities to start negotiating either before or after their own Ch 11’s.

Century/Chubb will come in and attempt to settle out individual or clusters of claims on a state by state basis.

Before the total capitulation by the TCC and Pachulski Stang at the confirmation trial in 2022, it had compiled insurance policy discovery and expert testimony (it never presented at trial bc it sold out the claimants) that showed insurance proceeds at between 90 and 120 billion dollars. That coverage springs back to life when this plan is allowed to collapse.  This 90-to 120 billion does not include the thousands of other liability insurance policies owned by the multitude of charter organizations most of whom received releases and contributed not a dime to the settlement. These untapped unknown policies were never pursued by the TCC and PS. Total professional malpractice if not outright fraud. 

As for these massive statute of limitations percentage reductions, some as much as 90%, the survivors will be back in control and not subject to the arbitrary whims of Houser.

This is where getting help from state legislatures will come in to play.
 

Several states have passed special window statutes tailored only to scout survivor residents of their own states …OH, AR, IN to name a few. Others will do the same because it’s an easy sell to reluctant legislators—a narrow window bill (first done in Michigan in the Larry Nasser US Gymnastics case several years ago) won’t impact any other entities e.g. schools, churches, local governments, other private organizations etc, but only scout insurers. It represents millions of dollars of revenue to a small subset of their residents who pay taxes, make purchases, and thereby help local businesses. It’s not a difficult sell. 

Local scout councils free from the yoke of a defunct BSA can reorganize and BSA National with all of its wasteful expensive, nepotistic bureaucracy will be vanquished to the trash heap. Scouting will have a new birth of freedom, free to go back to its roots with freedom to innovate and adapt to local conditions and sensibilities. What works in CA may not in AL or FL. etc.

 I expect scouting will evolve into a federation of independent scout organizations -  which will be healthier for the movement than what exists now or in the past.

Finally, I personally hope to see the 1/2 billion dollars in legal fees approved by Judge Silverstein and wasted on these bankruptcy law firms clawed back into a pot for the claimants via a class action malpractice lawsuit on behalf of all the claimants  

This is how the case should have been approached at the outset. BSA could not survive if survivors did not get screwed . There could only be one winner in this showdown.
 

Conversely, survivors would never get meaningful justice and accountability, if BSA was allowed to survive. Only Kosnoff understood this fundamental truth.