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Consumer Law

The Boy Scouts of America Submitted Their Bankruptcy Reorganization Plan

DOVER, Del. — The Boy Scouts of America submitted a bankruptcy reorganization plan this week that envisions continued operations of its local troops and national adventure camps but leaves many unanswered questions about how it will resolve tens of thousands of sexual abuse claims by former Boy Scouts

The plan was filed Monday in Delaware bankruptcy court, even though the BSA remains in intense negotiations with insurers who face substantial exposure for sexual abuse claims, and with the official committee representing abuse victims.

The plan calls for a $300 million contribution from the Boy Scouts’ 250-odd local councils into a trust for abuse victims, although the form and timing of those contributions remain up in the air. The Boy Scouts also say any unrestricted cash above the $75 million the organization claims it will need for operations when it emerges from bankruptcy will go into the trust fund. The BSA also has agreed to contribute its collection of Norman Rockwell paintings to the fund and to sell a warehouse facility in North Carolina, a Scouting University facility in Texas, and rights to oil and gas interests on properties in 17 states.

Read the source article at NBC News

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