Eagle1993

The DOJ is objecting to the plan. They haven't withdrawn the objection they have had since an earlier version of the plan ... as none of the versions address their concern. Note this objection was filed May 10, 2021. They object to the 3rd party releases. Yes, the judge can still approve the plan with the DOJ objection, it is a major issue. I found this comment interesting: https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/241d24f2-4d85-482f-a433-da28b3f8ce3e_3581.pdf

TCC Townhall Summary. No major announcements. No change to recommendation. Vote, vote, vote. More details below: Purdue Ruling ... could have major impact, still digesting Voting ... pushing everyone to vote. They recommend reject, but want everyone to vote. Votes can be submitted/changed until Dec 28. If claimants are concerned about their vote, call or email Omni. Best to email as Omni will reply back with how their vote is recorded. That could then be used as evidence later if needed. Council dashboards ... this data is just a new format to show data that i

Prof. Jacoby @melissabjacoby on Twitter has a good analysis of the Purdue ruling yesterday. In addition, there are a large number of articles out (Reuters goes in a bit deeper as does WSJ). Based on those and comments from the TCC town hall.. The Purdue ruling will be appealed AND it is in a different circuit .... so it sounds like no immediate direct impact to the BSA case; however, the case still could be influenced as bankruptcy courts watch each other and this appears to be a major deep ruling (142 pages) that reference prior supreme court rulings that greatly limits bankruptcy cou

TCC agrees with the estimate I had …. BSA will likely only start paying the $100M around 2035 (note payments stop 2036).

TCC talking about Purdue. BSA case is in the 3rd Circuit while Purdue is in 2nd. However, the judge addresses topics that apply to the BSA bankruptcy. There may or may not have some impacts. TBD…

Note that the issues are different in the BSA case in that there are questionable conduct by the Owners prior to filing. That said, I still find the various bankruptcy cases interesting as they are a bit ahead of BSA’s and may give us an indication of the hurdles left ahead.

Purdue Pharma bankruptcy has been overturned on appeal. https://www.wsj.com/articles/judge-overturns-4-5-billion-settlement-between-purdue-pharma-sacklers-11639698359 Issue was allowing releases of shareholders under a company bankruptcy. Bankruptcy code does not authorize such non-consensual non-debtor releases. Voting ... 95% of the 120,000 plus votes were in favor of the plan ... and it still lost on appeal.

There is some sort of formula we will probably never see. I expect it includes net unrestricted assets, claims, perhaps SOL vs outside SOL, etc. They had some sort of formula. The TCC, right now, does not show in these filings what they think the council can pay. We do know, that on mass, they believe in order for their liability to be discharged through bankruptcy it should be closer to triple their prior offer. In the end, I doubt the judge is going to discharge liability against thousands of organizations with this much churn in claimants. Perhaps if DOJ, TCC and everyone was on

Hearing now scheduled December 21. Will cover emergency request from some insurers to delay schedule. I believe their request is by 4 weeks minimum. https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/5db0af36-3dca-44b2-968e-c9821b875e9a_7783.pdf

At first appearance, it looks like the BSA, the BSA local councils, the Coalition and the future claimants committee struck a deal that IF there is a deal with the Methodist and/or Catholic church The Methodist and Catholic church must help BSA fundraise They must support scouting growth through 2036 Any fundraising dollars would reduce the amount BSA would have to pay to the settlement in terms of the $100M note At least that is the way I read it ... but it is an odd footnote. My ONLY guess is that there is concern the Methodist/Catholics pay off a settlement, flee the

Actually, I relooked at this. It appears that this deal above is for all Charter Organizations, EXCEPT the UMC, the Roman Catholic Church and the LDS. So, NO DEAL for the UMC or Catholic Church; however, a deal for every other CO. The agreement also has this footnote. It would be interesting to understand what this really means.

Looks like just the high level look per council, not the detailed report. But progress.

I think you may see those within SOL and with good state counsel see much higher payouts if this plan fails. They will be able to sue COs and LCs in state court and go after those entities + their insurance companies. Right now, CO's insurance is completely protected in this plan with no payments required. That is a big deal. They would be brought in if this plan fails ... which is a major concern of COs. LCs ... I really think this is a case by case basis. Some LCs are contributing very small dollar amounts in terms of % of their assets. Even 1 lawsuit that hits them would resu

Various updates today. I didn't attend hearing as was working. - AIG said there is no way to hold current schedule, min delay of 4 weeks required. Discovery not nearly complete. - TCC is indicating that voting may need to restart due to substancial changes via settlement mid vote. - DOJ is stating that vote is almost certainly required and will need to be clearly told what % of the settlement is now based on the growth of scouting. (Note that a lot of new settlements are based on scouting growth). - TCC is indicating they will be seeking discovery into mediation, specif

To me, the biggest question is how UMC and Catholic Church are let off with a payment of $15M from BSA. This seems to say that there is almost nothing expected from other COs. I don't expect the $2.458B to grow much more. Yes, there is upside to ~$2.8B and there are a few other insurance companies out there, but the big ones are in. Lets say $2.6B total. Remove LDS, remove FCR payment you get just about $2B. Lets assume half of the claimants take $3500. That removes ~$150M so you come down to about $1.8B. Remove trustee fees (lets assume 10%) which is probably optimistic, you drop

My guess below. This whole thing seems a bit like a hail mary (for the insurance companies, LCs and COs). I think National could exit fairly quickly ... but the foundation of the program would be at risk given LC/CO future liability. A ton of questions remain, confirmation will get to them. From National BSA ... they are out of money. The only money left would be selling their properties and then go after the JP Morgan loan (basically saying it isn't secured). That could be a tough fight. So, the only way they can provide more payments is loans and future payments. If this was a Na

So, with this, the guaranteed payments are: $106M from BSA in terms of property/cash (after removing payments to Coalition, etc.) $500M from local councils in cash/properties $250M from LDS (for LDS claimants only) $787M from Hartford (note for Hartford, this will not be an immediate payment and has some risk) $800M from Century $15M from LCs (for 2 charter org buyouts) $2.458M Total ... not 100% up front, but heavily I believe $400M+ is pulled out for future claimants (have to check again) and payments will also go to trust leaders Also ... $250M

In the updated agreement, there was a footnote that participating charter orgs, ad hoc committee (local councils), coalition, FCR will work together to identify youth protection changes. No details.

Ok ... a bit odd but would be good to see what others think. $100M ... based on payments above, ignoring everything else. BSA's current business plan page 376 below https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/2e1a8c44-7812-46a0-8a93-5aa5621dc7b2_6431.pdf says they hit 1,010,000 scouts by 2025 and projects 5.5% growth rate after. So, it would take until 2034 to exceed 1,500,000 scouts. If everything works out, this $100M offer is really the following: $2.5M offer in 2034 $5.4M in 2035 $8.5M in 2036 This is per the BSA plan. Now, if BSA

Here are payment terms on the $100M. Note ... councils and charter orgs will need to agree to YPT changes. The BSA has agreed to pay to the Settlement Trust an annual variable payment, commencing the year after the BSA Settlement Trust Note is paid in full and the BSA’s total outstanding debt under the JP Morgan facilitie up to a cap of $100 million Payment must be complete by 2036 or $100M is met. So, there $100M is the maximum they would pay and if membership grown remains under that, they stop paying fees in 2036. The BSA expects to be paying down the JP Morgan loan ...

Ok, a bit more info. https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/086fbe27-7a3d-4f42-9a19-383482f8c997_7745.pdf It looks like BSA's increase of $140M ($15M cash from LCs, $25M Loan from LCs and a $100M loan from BSA/LCs based on membership numbers). This payment would release the UMC and Roman Catholic Church from all liabilities.

So… what does this mean. #1 - I think we will see one of the more entertaining and lively members of each hearing (Tancred Schiavoni) exit stage right. Century will now want to get out of the way to allow this plan to pass. #2 - I am highly suspicious of the language about the $100M added as it contains a reference to COs. LDS offered $240M … is BSA looking to buy out all CO liability with $100M linked to membership numbers? That needs more info. If it simply a bump up from BSA and LCs that is real movement. #3 - The $40M adder from LCs seems pretty small, unless c

More information coming. I’m not sure if the $100M more from LC and BSA is contingent on releasing COs. As reflected in the Century and Chubb Companies Term Sheet, the Parties have also agreed to an additional contribution from the BSA and Local Councils on behalf of Chartered Organizations, which consists of: which consists of: (i) an additional $40 million contribution to the Settlement Trust, made up of an additional $15 million contribution from the Local Councils (in addition to the $500 million current cash and property contributions under the Fifth Amended Plan) and an increa

Rumors that local councils have increased their offer by $40M and Century settlement is in at $800M. https://www.cbsnews.com/news/boy-scouts-america-bankruptcy-sex-abuse-settlement/

Looks like there is a deal being finalized now. Insurance came through late and the US Olympic committee added $34M. https://www.wsj.com/articles/nassar-victims-reach-380-million-settlement-with-usa-gymnastics-and-u-s-olympic-and-paralympic-committee-11639406377 Note that these increases came in after 95% approved the deal ... so even with that large approval, these updates were seen as necessary for confirmation of the plan. Also note that the Dept. Of Justice was objecting to the release of the USOPC ... which helped force the updated deal. Unfortunately for the BSA