Statement of the Coalition of Abused Scouts for Justice, Official Committee of Tort Claimants and Future Claimants’ Representative Regarding Restructuring Support Agreement with Boy Scouts of America et al.
PUBLISHED ON: 07/01/2021
On July 1, 2021, the Coalition of Abused Scouts for Justice (the “Coalition”), in concert with the Official Committee of Tort Claimants (“TCC”), and the Future Claims Representative (“FCR”), both appointed in the Boy Scouts of America Chapter 11 cases, as well as law firms (“State Court Counsel”) representing over 60,000 victims of sexual abuse in the Boy Scouts, executed a Restructuring Support Agreement (the “RSA”) with the Boy Scouts of America and representatives of the Boy Scouts’ over 250 Local Councils. The RSA enumerates terms of an agreed plan of reorganization that will allow the Boy Scouts to exit bankruptcy proceedings while providing compensation to sexual abuse victims and holding the Boy Scouts’ insurers to the terms of the insurance policies purchased by the Boy Scouts and their affiliates over many decades.
The RSA is a significant accomplishment that achieves consensus among large numbers of sexual abuse claimants as well as the Boy Scouts of America and its Local Councils. After months of negotiation, the parties arrived upon a plan agreement and architecture that significantly increases and secures the contributions of the Boy Scouts and Local Councils, and articulates a fair and equitable distribution procedure for abuse survivors that can be implemented immediately upon the Boy Scouts’ exit from Chapter 11 proceedings, while at the same time incentivizing further contributions from liable non-debtor parties and providing the survivors’ Settlement Trust sufficient flexibility and authority to obtain further contributions post-exit.
Among other key features, the RSA provides that:
- The Boy Scouts will, from its initial plan, approximately double its direct contribution to the Settlement Trust for abuse claimants, from $120 million to as much as $250 million.
- The Local Councils will increase their direct contribution to the Settlement Trust, from $425 million to $600 million, with assurances as to the transfer and vesting of agreed real property.
- The Boy Scouts will seek a determination from the Bankruptcy Court that it has no obligations under its purported settlement agreement with The Hartford insurance company. The Boy Scouts have acknowledged that the Coalition, FCR, and TCC will not support any Plan incorporating the Hartford Settlement.
- The Boy Scouts will provide the Settlement Trust access to documents and records concerning past abuse, as well as rosters and other information necessary to assess and resolve abuse claims.
- The Boy Scouts will provide additional non-monetary compensation including insurance rights and information, and commit to analysis and importantly, implementation of youth protection measures in ongoing programs.
- The revised forms of Settlement Trust Agreement and Trust Distribution Procedures provide fairness and clarity for victims in connection with claim distributions.
The Coalition, TCC, and FCR believe that the RSA improves outcomes for abuse victims, and shifts the focus of the Boy Scouts’ restructuring efforts providing victims and their advocates a stronger voice in the process. Indeed, the most important features of the RSA concern the Trust Distribution Procedures and related provisions concerning insurance assets and trust governance.
The RSA does not resolve every pending issue in the Boy Scouts’ Chapter 11 proceedings. The Coalition, the TCC, and the FCR expect that steps toward the confirmation of the plan of reorganization embodied in the RSA, including negotiations with other potentially contributing parties, will proceed over the next several months. However, the RSA provides for the first time in these cases a path, supported by survivor groups, to just, equitable compensation for the victims of decades of horrific abuse.
Sexual abuse claimants and their counsel are encouraged to contact the Coalition, the TCC and the FCR for further information and support further efforts to improve outcomes for sexual abuse survivors.
The Coalition is represented by David Molton of Brown Rudnick LLP. The Official Committee of Tort Claimants is represented by James Stang of Pachulski, Stang, Ziehl and Jones LLP. The Future Claimants’ Representative is James Patton, represented by Robert Brady of Young Conaway Stargatt & Taylor, LLP and Kami Quinn of Gilbert LLP.
Counsel to the Coalition of Abused Scouts for Justice
David Molton – email@example.com
Eric Goodman – firstname.lastname@example.org
Sunni Beville – email@example.com
Tristan Axelrod – firstname.lastname@example.org
Counsel to the Official Committee of Tort Claimants
James Stang – email@example.com
Robert Orgel – firstname.lastname@example.org
Debra Grassgreen – email@example.com
Ian Nasatir – firstname.lastname@example.org
John W. Lucas – email@example.com
Future Claimants’ Representative
James L. Patton – firstname.lastname@example.org
Counsel to the Future Claimants’ Representative
Robert Brady – email@example.com
Edwin Harron – firstname.lastname@example.org
Kami Quinn – email@example.com
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