Coalition of Abused Scouts expresses satisfaction regarding hearing

Chicago, Sept. 29 – The Coalition of Abused Scouts for Justice expressed satisfaction, “but not surprise” regarding the conclusion of the disclosure statement hearing pertaining to the Boy Scouts of America’s Chapter 11 bankruptcy case, according to a press release.

The official tort claimants’ committee had asked the U.S. Bankruptcy Court for the District of Delaware to terminate the company’s exclusive periods to file and solicit votes on a Chapter 11 plan.

The court denied the motion to delay the disclosure statement hearing by an additional two weeks.

“It was an unnecessary and predictable stall tactic. Each month this bankruptcy drags on is another month in which legal and related expenses accrue, denying survivors of their rightful compensation,” the coalition stated in a press release.

“Attorneys for the Boy Scouts have stated that the organization will not be solvent if this case drags on much longer,” the group also said.

The coalition think that the tort claimants’ committee would be comfortable with the case being converted to Chapter 7.

The concern for the coalition is that the case could stretch on for another five or 10 years if that were to happen, and survivors would be denied compensation for years, which would be further reduced due to additional legal expenses.

The Boy Scouts and the coalition are now united in desiring a quick exit from bankruptcy.

The tort claimants’ committee believes that a fast exit would involve “inadequate insurance and chartered organization settlements that fail to capture the billions in value they promised would pay the sexual abuse claims of survivors,” as previously reported.

Survivors will soon have the opportunity to vote on the broadly supported restructuring plan, which is expected to include settlements with additional chartered and sponsoring organizations, insurers, and other third parties, the coalition concluded in a release on Wednesday.

Boy Scouts of America is based in Irving, Tex. It filed bankruptcy on Feb. 17, 2020 under Chapter 11 case number 20-10343.

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