Chapter 11 announced - Part 14 - Plan Effective

[InquisitiveScouter]

3 hours ago, mrjohns2 said:

@Eagle1993 Thanks for your reporting through this whole process. Based on one of your bar graphs, it looks like they started at ~$230M? With $25M left, I wonder what their payroll and power bills are. That isn’t a ton of buffer to even cover normal inflows and outflows. It really seems, like maybe you and others had said, they didn’t have many months left. 

Yes, Chapter 7 (liquidation) is still a real possibility, IMO.

[MYCVAStory]

I just wanted to say happy father's day to all the Survivors who tried and have tried their best, for so long, to be the best father they could be.  The secrets you kept to protect the partners in your life you cared about, how hard you tried to protect your own children, and the hard work to not let anyone know what you were battling are all the stuff to be proud of even when you feel like you could have done more.  Chin up. 

[johnsch322]

In an email from my lawyers today I was informed that in their opinion it will take more than a year before appeals are exhausted. Hartford and Century do not have to put money into the settlement trust until after the appeal process however the claims review process will be taking place during this time.

[MYCVAStory]

On 6/22/2023 at 11:58 PM, johnsch322 said:

In an email from my lawyers today I was informed that in their opinion it will take more than a year before appeals are exhausted. Hartford and Century do not have to put money into the settlement trust until after the appeal process however the claims review process will be taking place during this time.

Hartford and Century have made partial payment.  Approximately 150 mil total if memory serves.  It's in the confirmed plan.  Optimistic assessment:  Yes, the remainder must be paid after appeals but at least the Trust is funded to a level that allows it to start its work.   Pessimistic assessment: Yes, let's hope that the plan isn't overturned on appeal at the same time the Trustee and Trust professionals burn through the initial contributions and become the only recipients of Trust money!.

[JBWest]

Trustee sues opposing (non-settling) insurance companies in Texas.
https://www.law.com/texaslawyer/2023/07/18/judge-sues-insurers-for-alleged-bad-faith-in-boys-scouts-sex-abuse-cases/?slreturn=20230619223103

[ScouterDavid]

JBWest - can you post the actual story. that website wants me to pay and log in to view the story.

[RememberSchiff]

Moderator Reminder:  Previous link is behind a paywall. Posting the link is fine, but for those with subscriptions, please respect the publisher's copyright and their attempt to monetize that copyrighted content.  Thanks.

 

Edited July 20, 2023 by RememberSchiff

[mrjohns2]

1 minute ago, RememberSchiff said:

Previous link is behind a paywall.

Free 1 account per month if you register. I registered and it worked to read the one article. 

[PaleRider]

My lawyer told me since the trust is up and running he doubts very seriously that the appeal will delay distribution of funds

[MYCVAStory]

On 7/20/2023 at 9:59 PM, PaleRider said:

My lawyer told me since the trust is up and running he doubts very seriously that the appeal will delay distribution of funds

That's correct but.....  The Trust is "effective" and operational but can only distribute the funds it has "in the bank" once awards are determined.  Making that even more tricky is that without full payments from the settling insurers and others the Trust must also "hold back" funds in a safe manner to ensure that it doesn't run out of money.  The TDP makes clear that awards will be determined on a "First in First Out" basis but that does NOT mean that Survivors who get their information submitted first will get some sort of full payment and deplete available funds for those who submit later.  So, Survivors will receive an award notification, and determine if they will accept it without review, and then receive some portion of payment.  As settlements are reached and funds distributed there will be additional payments.  Now, whether Survivors are paid 100 cents on the dollar or some fraction of that will NOT be known until we know how many total Survivors submit their questionnaire when the Trust starts that process AND the final total of assets gained.  The former will be known six months after the questionnaire goes live.  The latter will be known after ALL litigation against non-settlers is over.  I fear that some Survivors will get a letter stating their award and fall prey to unscrupulous "structured settlement" lenders or run up debt in anticipation of funds that might not appear.  Hopefully the Trust will be transparent and communicate expectations.

[RememberSchiff]

SANTA FE, N.M., Aug. 4, 2023 /PRNewswire/ -- Scouting Settlement Trust, the fund established to compensate the 82,000 survivors of sexual abuse who filed claims against the Boy Scouts of America, today announced the launch of its online portal to begin the processing of those claims.

Letter from the Settlement Trustee (Aug. 4, 2023):

Processing Portal Launched for Initial Claims

www.scoutingsettlementtrust.com

Press release:

https://www.prnewswire.com/news-releases/scouting-settlement-trust-launches-portal-to-begin-processing-abuse-claims-301893625.html

Edited August 4, 2023 by RememberSchiff

[Eagle1993]

This is interesting.  Supreme Court put the Purdue Pharma plan on hold ato hear arguments about allowing non debtor releases.  One wonders if this could give a bit of fuel to the appeals against the BSA plan.

 

https://www.cnn.com/2023/08/10/politics/supreme-court-purdue-pharma-opioid-settlement/index.html

 

 

[InquisitiveScouter]

6 minutes ago, Eagle1993 said:

This is interesting.  Supreme Court put the Purdue Pharma plan on hold ato hear arguments about allowing non debtor releases.  One wonders if this could give a bit of fuel to the appeals against the BSA plan.

 

https://www.cnn.com/2023/08/10/politics/supreme-court-purdue-pharma-opioid-settlement/index.html

 

 

Additional background:

https://www.bloomberglaw.com/external/document/X42S2V68000000/bankruptcy-professional-perspective-constitutionality-of-non-con

https://www.congress.gov/bill/117th-congress/house-bill/4777

Wonder why this bill died in Congress??

[MYCVAStory]

 

8 hours ago, Eagle1993 said:

Supreme Court put the Purdue Pharma plan on hold ato hear arguments about allowing non debtor releases.  One wonders if this could give a bit of fuel to the appeals against the BSA plan.

Well, if anyone was looking for a sign that this would be moving along a little quicker, you didn't get it today.  What this means is that the Supreme Court will hear the Purdue arguments in December.  Then, they will probably rule by the end of June when they go on recess.  Lately they've issued a lot of decisions at the very end of the term.  Purdue is in the Second Circuit and the BSA Bankruptcy is in the Third Circuit.  BUT, the third circuit will most likely wait for a Supreme Court ruling on this so that it has guidance.  This guidance has been long overdue since different Circuits/Districts are more and less favorable to non-debtor third-party releases.  That's also the reason the BSA went venue shopping and set up an entity in Delaware shortly before entering bankruptcy.  So, the Trust can continue to operate, and even make "quick pay" payments, start issuing award decisions, and even making a portion of payments with the money it has on hand.  BUT....there is NOT $2.7B in the bank because full payment from settling insurers isn't due until ALL appeals have been settled.  As well, yes, should the Supreme Court strike down third-party releases before the Court of Appeals rules then the current bankruptcy plan blows up.  IF, and no one expects it, the Court of Appeals rules and denies the objections then the plan does move forward.  A supreme Court ruling can't undue that after the fact.  That said, the objectors can file a writ to the Supreme Court to have this paused, as is the case with Purdue.  The Supreme Court would decide whether it will accept the writ.  Again, the Court of Appeals is expected to avoid that scenario by waiting to see how Purdue shakes out.

Lots of "what-ifs."  Survivors are awaiting the Trust making the claims questionnaire available.  Then, there will be a six month window to complete it.  Since that will expire before a Supreme Court ruling Survivors will have little choice but to complete the questionnaire and keep their fingers crossed.  In the interim, at the most will be some tea-leaf reading at the end of this year when we hear the tenor of the questions being asked in Purdue.

If you want the bankruptcy to blow up then today's pause gives you a bit more hope.  If you want this to move forward then you have a little more reason to be concerned.  Regardless, if you're a claimant then your task will still be to submit your questionnaire and get back to waiting.  I can only shake my head in frustration over all of it.  Again.

 

[SiouxRanger]

9 hours ago, MYCVAStory said:

 

Well, if anyone was looking for a sign that this would be moving along a little quicker, you didn't get it today.  What this means is that the Supreme Court will hear the Purdue arguments in December.  Then, they will probably rule by the end of June when they go on recess.  Lately they've issued a lot of decisions at the very end of the term.  Purdue is in the Second Circuit and the BSA Bankruptcy is in the Third Circuit.  BUT, the third circuit will most likely wait for a Supreme Court ruling on this so that it has guidance.  This guidance has been long overdue since different Circuits/Districts are more and less favorable to non-debtor third-party releases.  That's also the reason the BSA went venue shopping and set up an entity in Delaware shortly before entering bankruptcy.  So, the Trust can continue to operate, and even make "quick pay" payments, start issuing award decisions, and even making a portion of payments with the money it has on hand.  BUT....there is NOT $2.7B in the bank because full payment from settling insurers isn't due until ALL appeals have been settled.  As well, yes, should the Supreme Court strike down third-party releases before the Court of Appeals rules then the current bankruptcy plan blows up.  IF, and no one expects it, the Court of Appeals rules and denies the objections then the plan does move forward.  A supreme Court ruling can't undue that after the fact.  That said, the objectors can file a writ to the Supreme Court to have this paused, as is the case with Purdue.  The Supreme Court would decide whether it will accept the writ.  Again, the Court of Appeals is expected to avoid that scenario by waiting to see how Purdue shakes out.

Lots of "what-ifs."  Survivors are awaiting the Trust making the claims questionnaire available.  Then, there will be a six month window to complete it.  Since that will expire before a Supreme Court ruling Survivors will have little choice but to complete the questionnaire and keep their fingers crossed.  In the interim, at the most will be some tea-leaf reading at the end of this year when we hear the tenor of the questions being asked in Purdue.

If you want the bankruptcy to blow up then today's pause gives you a bit more hope.  If you want this to move forward then you have a little more reason to be concerned.  Regardless, if you're a claimant then your task will still be to submit your questionnaire and get back to waiting.  I can only shake my head in frustration over all of it.  Again.

 

Normally, I don't quote a post simply to "agree" with the post.  I usually just upvote, but this issue is an exception.

@MYCVAStory has precisely and concisely summed up the current state of the BSA bankruptcy in light of the Purdue case and the Supreme Court's recent action.  The questions asked by the Supreme Court Justices during oral argument in December will be the next, best hint as to which way they are leaning.