Chapter 11 announced - Part 14 - Plan Effective

[Eagle1970 212]

Is it likely this will pause the BSA plan?

[Eagle1993 2211]

8 minutes ago, Eagle1970 said:

Is it likely this will pause the BSA plan?

I doubt it.  They had their chance to pause it, and after briefly pausing it, they let the plan proceed.  I expect they knew this decision and if they expect to impact the BSA they would have kept the pause going.  Just a guess, perhaps hope.

[Timbuktu 9]

Were payments being processed between the February (brief) hold and today? Do we know roughly what %age have been processed in total?

[Eagle1993 2211]

On 2/16/2024 at 3:42 PM, Eagle1993 said:

Would uphold Purdue plan: Thomas, Kavanaugh

Would reject Purdue plan: Gorsuch, Barrett, Jackson

On the fence (or just tougher to read): Roberts, Alito, Sotomayor, Kagan

Actual results...

Uphold Plan... Kavanaugh, Roberts, Sotomayor and Kagan

Reject ... Thomas, Gorsuch, Barrett, Jackson and Alito

Interesting as the results have the most conservative members rejecting the plan joined by liberal Jackson and the moderates/liberals upholding the plan.

Waiting to read more insights into the ripple effects.  Hoping BSA plan is safe.

Edited Thursday at 03:40 PM by Eagle1993

[Eagle1970 212]

• The Trust is aware of the recent decision of the United States Supreme Court in Harrington v. Purdue Pharma. The impact of that decision, if any, on the Boy Scouts’ plan of reorganization will be decided by the Third Circuit Court of Appeals in the pending appeal from confirmation of that plan in due course. In the meantime, it is business as usual for the Scouting Settlement Trust. My team continues its work evaluating and determining the claims that have been submitted to it.

 

Respectfully,

Hon. Barbara J. Houser (Ret.)

Trustee

Source Link: https://www.scoutingsettlementtrust.com/s/

Edited Thursday at 05:12 PM by RememberSchiff
added source link

[BadChannel70 34]

Lujuan claimants filed today in 3rd circuit court requesting additional briefing on impact of Purdue decision. Arguing BSA plan does not pay in full all claims or that is has been substantially consummated. 

Like I posted earlier, this is still a very hotly contested plan...

[SNEScouter 62]

2 hours ago, Eagle1970 said:

Is it likely this will pause the BSA plan?

Only my opinion, but I doubt that the Third Circuit will stay the plan now.  It has been in effect for some 14 months at this point.  I won't be surprised if the Lujan & D&V claimants seek a stay, but I expect it will be denied. Recall that several requests for a stay have been made and denied already, including by the Third Circuit and SCOTUS. 

Instead, the Third Circuit will move forward to decide the appeal.  Recall that the case was already fully briefed and scheduled for oral argument in April at the Third Circuit.  However, they decided it made sense to wait a mere couple months for Purdue to be decided before moving ahead with argument and decision.

At this point, the Third Circuit may now request limited further briefing on the effect of Purdue.  That would be sensible.  On the other hand, the issues decided in Purdue were pretty well anticipated in the earlier briefing, so there probably doesn't need to be much more ink spilled on it.  The Third Circuit will hear oral argument at some point, and then render a decision.

The battleground for the Third Circuit appeal is now squarely focused on equitable mootness - that is, whether the plan has been substantially consummated since going into effect in April 2023, and whether third parties have so changed their position in reliance on the effectiveness of the plan,  that it would be near impossible to unwind it.  If the Third Circuit finds the appeals to be equitably moot, it could affirm the plan on that basis even in light of Purdue's finding that nonconsensual third-party releases are not permitted under the bankruptcy code. 

Regardless of the result, expect the losing side to seek SCOTUS review of the eventual ruling by the Third Circuit and/or en banc review (that is, review by the full Third Circuit judges instead of a panel of 3 judges).

Why is it hard to unwind the plan?  Well, for one reason among many others, 250 +/- local councils have contributed millions of dollars to the Settlement Trust, as well as real estate sold or directly  contributed, in exchange for the benefit of the third-party releases contained in the BSA's plan of reorganization.  Similarly, the settling insurance companies (Century & Hartford & a few others) bought back the BSA's liability insurance policies in exchange for significant contributions to the Settlement Trust.  Significant amounts of the money contributed to the Settlement Trust has been spent, making it hard to simply refund those payments.  The plan also involved a significant refinance of the JP Morgan debt that is secured by Philmont, the Summit Bechtel Reserve, and other high adventure bases.   Unwinding all of this would be incredibly difficult, if not impossible.

Lots of twists and turns stilI to come.