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Eagle1993

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Posts posted by Eagle1993

  1. 5 minutes ago, ThenNow said:

     

    E5E09385-D186-4DB3-ADBE-C011A6167093.jpeg

    Yikes.  85% seems low.  I'm still 95% convinced Judge LSS will approve the plan.  I expect some minor changes, but she could have easily changed the direction during the RSA hearing.  Also, I think bankruptcy judges believe bankruptcy is the best path for compensation and dealing with non debtors.

    However, that 85% will provide plan opponents some fire power during the district court review.  I haven't seen the 3rd circuit district court review/approve a non debtor release since Purdue.  I wouldn't be surprised to see plan approval in bankruptcy then kicked back by the district.  At some point, it may become BSA only.

    I think Purdue and BSA are examples 1 and 2 on why bankruptcy should be limited to debtors only.  In BSA, there would have been a lot less spent on legal fees.  Simply divide up BSA unrestricted assets and move on.  Insurance ... settle or let the trust go through the battles.  Pulling in non debtors wasted time and resources.  Yes, I expect the $ pot grew a lot AND those outside SOLs probably faired better, but at what expense (legal)? 

    Perhaps all will work out in the end, but man, this is some ugly sausage making.  

    • Like 1
  2. Objections coming in again on the plan.

    US Trustee once again objects and now adds in more concerns about the IR process.

    08a0295e-d9b5-49d8-9d9e-714eeea939db_9015.pdf (omniagentsolutions.com)

    Quote

    But the whole Independent Review Option process, including its $20,000 fee, does not meet the good faith requirement of section 1129(a)(3) of the Bankruptcy Code

    Quote

    Article XIII provides that the Settlement Trustee may, after the conclusion of the Independent Review Option, reject the recommendation of the neutral third-party evaluator. Thus, it is possible for an abuse claimant to seek independent review, pay the more than $20,000 fee for the process, obtain a reviewed claim amount either higher or much higher than that awarded by the Settlement Trustee—and have the Settlement Trustee nullify it all by rejecting the higher claim amount. The Independent Review Option is illusory

    Quote

    Forcing claimants to pay more than $20,000 to elect independent review is excessive. By comparison, the fee for a debtor to file chapter 11 is currently $1,738, and the fee to file an adversary proceeding is currently $350.

     

    • Thanks 1
    • Upvote 1
  3. 19 minutes ago, fred8033 said:

    The mark-ups are disgusting, but not evidence of fraud.   The PDF starred entries are temp workers.  ... It's the nature of contracting. 

    Law firm contacts temp company to get extra workers.  Temp company pays person $16-$20 per hour.  Temp company has cost (insurance, payroll taxes, sales reps, facilities).  That raises their cost $20-$30 per hour.  Temp company wants to make profit so charges $40 to $60 per hour.  Law firm has cost (building, equipment, coordination).  That raises cost to $50-$65.  Law firm wants to make profit.  That doubles again at least to $80-$125.  

    It's really no different than buying product from a retail store.  Walmart contracts over-seas and pays $8 per pair of pants, but charges you $35.   Oversea manufacturer pays $2 for material and $1 for labor.  

    This sounds more like a disgruntled employee.  

    Sad to see myself defending a law firm.

     

    Could be.  It would be interesting how the rates are vetted.

    Now, if they are charging for labor they didn't use, that is the red flag. 

    Omni is one of the top expenses of the BSA to date.

  4. Omni FRAUD?!?

    A former employee of Omni is alleging they are charging high fees for lower wage workers.  $16 - $20/hour workers are being charged at $80 - $125/hr to BSA.

    Also claiming they hired 30 temporary workers who did nothing and they charged BSA.

    Also claims knowledge that the ballot count is incorrect, and COO lied to court.

    Finally, also claims they did the same in other cases, including USA Gymnastics

    ba0e24ce-e4d9-42b1-a318-937317f50c1d_8971.pdf (omniagentsolutions.com)

  5. BSA's DEI statement. 

     

    I struggle to see how the statement below would cause anyone to resign.  

     

    The Boy Scouts of America promotes a culture where each youth, volunteer, and employee feels a sense of belonging and builds communities where every person feels respected and valued.

    Leading by example and encouraging each other to live by the values expressed by the Scout Oath and Scout Law, we welcome families of all backgrounds to help prepare young people to serve as successful members and leaders of our nation’s increasingly diverse communities.

    • Upvote 3
  6. Getting close on the settlement trustee and some other key names.

    Microsoft Word - BSA - Notice of Identity - Settlement Trustee and Claims Administrator (to be filed).DOCX (omniagentsolutions.com)

    Former Judge Michael Reagan - for the independent review process.  19 years on the district court Michael Joseph Reagan - Wikipedia

    Former Judge Diane Welsh - for the TDPs .. 11 years on the district court.  Hon. Diane M. Welsh (Ret.), JAMS Mediator and Arbitrator (jamsadr.com)

    The Trustee is down to one of these two:

    Former Judge Barbara Houser - It appears she helped mediate the bankruptcy of Puerto Rico KMBT_C454e-20190604125753 (govdelivery.com)

    Former Judge David Levi - David F. Levi - Wikipedia - Former dean of Duke Law

  7. Just saw some numbers from my council and was wondering if others are seeing similar trends.  Changes from Jan 2020 to Jan 2022.  We didn't have many LDS units, and I think they already dropped by Jan 2020.

    • Cub Scouts decreased 15%
    • Scouts BSA decreased 7%
    • Venturing decreased 90% (less than 50 members left in our council)
    • Explorers decreased 28% (less than 60 members in our council)

    In terms of units

    • Cubscouts lost 18% of units
    • Scouts BSA lost 5% of units
    • Venturing lost 43% of crews
    • Explorers lost 33% of posts

    Venturing is on life support.  Adding girls to Scouts BSA is probably killing venturing.  I do think there is potential there, but at least for our council, it is nearly dead.

    Explorers ... why have this risk for such a small program.

    Scouts BSA ... doing well all considering, but faced with uncertain future given Cub Scout number

    To me, the biggest concern right now is Cub Scouts.  15% loss still exists even after a very good recruiting year (and 18% loss of units).  That will hit Scouts BSA in a few years.  

    I do expect further recovery and the numbers were really bad Jan 2021.  Hopefully BSA can exit bankruptcy and focus on their path forward. 

  8. 3 hours ago, qwazse said:

    cold weather camping

    I agree it is definitely not a requirement; however, I will say for those of us in colder climates ... it is tough to camp if you are only willing to camp overnight when it is above 40.  That takes out half the year.  I think in my Troop, the concern is that just 3 years ago we had 50+ camping in early Feb and now only 2.  

    3 hours ago, qwazse said:
    • Core: master first class skills when you may.
    • Elective: 130+ MBs at your convenience. Or consider other awards.
    • Have fun ASAP.
    • Keep physically strong, mentally awake, and morally straight in order to help others always — thereby fulfilling duty to God and country, and upholding your honor.

    100% agree.   I would love to see this be the clear messaging to parents and Troops.  Unfortunately, I think this message is muddled with too much focus on a binary outcome of scouts with many judging the success on achievement of Eagle.  I'm not sure how many Troops buy into this ... hopefully most follow your summary.

  9. Confirmation plan hearing now going to be delayed until March 14th.  During court today, per Twitter sources, the US Trustee is asking how this can proceed when trained professionals are struggling to describe the deal.  Also questioned how chartered orgs are being handled when many have not been part of discussions.  Finally, sounds like some concerns that the "neutral" path currently has $0 in its account.  I didn't attend today until late and now just listening in.  

    • Thanks 2
  10. I highly recommend watching the TCC townhall from tonight once the recording is released.  They went into a lot more details on the various aspects of the plan.  Some quick, interesting points.

    1) The TCC is now able to reject any new settlement.  BSA cannot add a new settlement to the plan without TCC approval.

    2) The only COs currently protected before 1976 are the UMC and LDS.  

    3) Most of the money that will go into the neutral ($20K trial) path will come from excess insurance companies.  These companies didn't settle and provide insurance after the primary pays out.  The belief is that by going down this special path, the excess ins. companies will either settle or have to pay out.

    4) BSA must tell local councils which youth protection policy changes they rejected.  

    5) IV files most likely will not be fully released.  Dr. Kennedy explained that there are a lot of non sex abuse members listed in there, also non validated claims.  No one wants to be sued.  So, it will take a lot of time and redactions.  Something will be released, but limited.

    6) Individuals can sue non settled COs 1 year after plan confirmation.  That gives COs some time to reach a settlement with the trust.

    • Upvote 2
  11. 2 hours ago, Jameson76 said:

    From a risk perspective they love the online, day events, heavy classroom.  No outings no YPT issues of chance of an injury.  Also this meets the STEM (STEAM / whatever) that some feel they youth want.

    Agree that we are now dealing with kids who do not play and roam outdoors.  We did not do a biking outing as so few of the younger Scouts rode (or knew how) to ride a bike.  It is very hard, especially for those of us that grew up in the old old days of scouting.

    Back then

    • Second Class - Take 3 hikes on a different day, not less than 5 miles each
    • Second Class - Follow another scout that knows you are stalking him fore 1/2 mile without being seen
    • Second Class - build a fire with no more than 2 matches, cook a meal without utensils
    • First Class - point out 5 constellations
    • First Class - send and receive 20 words using morse code
    • First Class - on one of your overnight campouts carry your gear on your back for at least 1 1/2 miles

     

    It's interesting.  I had a conversation with a dad at Klondike and he said Scouts has become too easy.  He thinks Scouts would actually have more members if we increased the outdoor requirements (such as the ones you listed above).  More hiking, camping requirements.  I'm not sure if it would increase membership, but I think it could provide more value to those who are members.

     

  12. The problem is with Citizenship in the Society and a ton of focus on online merit badge classes ... BSA is headed in the opposite direction.  There are a few kids that seem to love this new direction and soak up these online merit badge classes but won't camp outside often (just enough to advance).  

    My klondike experience was sad.  Basically a day event only.  Camp was empty at night.  Yes, some of that is Covid ... but the momentum of an outdoor program is fading.  Even the Troops who cabin camp left.  Older scouts in my Troop told the younger ones that camping out in the cold is "miserable".  We had 50+ scouts & adults camping just 3 years ago.  400+ across all Troops.  Now, empty ... probably less than 50 across the entire district.

    My question ... does BSA see the future as online MBs, day events and heavy classroom based Eagle requirements OR outdoor, open play to gain skills (and thus advance).

    • Upvote 1
  13. Agree with the comments above.

    My son races NICA and is working on his mountain bike merit badge.   There are various features (roots, rock, etc.), dual and single track, much of it in the woods.  There are climbs and descents, etc.  I would say this is mountain biking.  I wouldn't count his flat, straight trail ride ... which they do for fitness ... as mountain biking.

     

  14. Within Scouting, barriers to abuse is effective when followed.  I think the number of abused has dropped off from the peak and most Troops & Packs are safe.  For the most part, I think the YP changes in the bankruptcy will further help.

    However, one of my concerns, long term, is the Explorer program.  Given the number of youth in the program, it seems to have an outsized number of abused.

    To me, Explorers is not a key part of BSA's mission (along with Learning for Life).  These programs should be spun off as separate organizations.  Continuing these programs under BSA puts the entire mission at risk.  I would think BSA should focus on Scouting (Cub, Scouts BSA, Venturing & Sea).  

    • Sad 1
    • Upvote 4
  15. 20 minutes ago, vol_scouter said:

    Council Executive Boards would be wary.  Especially because if the path fails to deliver a release for the councils, then they will need that money for their own legal defense.

    I think the only councils that would be 100% on board are those that are likely to go into bankruptcy if that National plan falls through.  Even for my council, at some point it may be better to just let national go under and save as much money as possible.  There is definitely a balancing act.

    I agree ... if BSA asks for a big payment to continue, it would probably go through the Ad Hoc committee.

    • Upvote 1
  16. 7 hours ago, fred8033 said:

    #1  Was there any talk of the toggle; BSA only bankruptcy? 

     

    No, none.  A few references to Chapter 7 but not by BSA and only in passing.

     

    7 hours ago, fred8033 said:

    #2  How much would be available to victims?  

     

    The ~$2.7B initially.  The trustee would be empowered to go after non settled chartered orgs, non-settled insurance companies (national BSA insurance, LC insurance and it sounds like CO insurance).  The Roman Catholics are VERY upset that the non-settled COs have their own insurance now targeted with this plan.

    7 hours ago, fred8033 said:

    #3  Would victims get more than current path?

     

    They have 3 paths.  $3500 or TDP just like previous.  TDP requires more documentation and the trustee (designee) would determine payout based on TDP scales.

    The 3rd path is the neutral.  A party (likely retired judge) would basically oversee a trial.  The claimant would have to provide $20K + a ton of documentation.  They would have to be examined by a psychologist (possibly).  Sit through cross examination from lawyers (probably from insurance companies).  After this "trial" the "neutral" would determine liability and damages as if it were a state case.  Then, the claimant would get 100% of those damages.  Up to $1M would come directly from the trust.  Everything over $1M would come from the excess trust fund that is collected from the groups I mentioned in your 2nd question.  

    7 hours ago, fred8033 said:

    I hope not but I'm thinking about what would happen?  Would this be treated as a franchisor / franchisee bankruptcy?  BSA liquidates and LCs sue to keep using IP to avoid harm?   Or LCs form a weak association to purchase the intellectual property at firehouse values?  

     

    I think basically everything is sold (trademarks, property, etc.).  Then claimants are paid after secured debtors are paid.  I doubt LCs would be pulled in.  

    To me, if this plan doesn't go through this path there are two options.

    Option 1 - Chapter 7

    Option 2 - BSA charges all LCs an assessment.  Perhaps $500K each, one time charge.  If you can't afford it, merge with another council.  Lets say half councils merge, they would get $62.5M ... enough to probably last 6 more months in bankruptcy.

     

    • Thanks 2
    • Upvote 1
  17. 10 hours ago, 1980Scouter said:

    One other issue is CO's and their future with BSA. If they lose catholic and other CO's this would likely end the program.

    I'll be blunt. Most COs provid almost nothing to the program.  The Methodist just released a joint statement with the BSA that they are on board and working on a new chartered organization agreement language.  BSA just needs a way to have units charter with councils (like Girl Scouts) and for the most part they will be fine.  That said, losing the Catholic Churches would definitely hurt.  

     

    My unit already discussed and we would prefer no CO over our current one. They provide no meeting space, no money, are tough to find to sign off on leaders and charters.  

    • Upvote 1
  18. 2 minutes ago, vol_scouter said:

    @Eagle1993  Your evaluation sounds likely but I doubt that the BSA can survive while hemorrhaging money to attorneys until 1 August.  There has been solid membership growth but I doubt that it can allow things to go on.  
     

    What a sad situation.  

    I think the costs drop substantially by end of March.  Since the TCC, FCR will likely not appeal, their costs should almost go to $0.  Even the costs in district/appeals court should be a lot less (no voting to pay for, etc.).  Looking at the history, early on they were spending at times less than $1M per month.  I could see us return to $1-$2M per month vs $10M right now.  

    However, if this plan is rejected ... I am VERY concerned.  I think this is the last swing of the bat.

    • Upvote 3
  19. So, based on today's status hearing.

    1) BSA is running out of money.  Everyone seemed to agree they are in serious trouble.  They may need to use the few million from Scouting U to keep operating.  I get the sense that there is a strong possibility BSA is on the edge of Chapter 7.  TCC legal team looked a bit grey when talking about the timelines and how important it was to get to the hearing as quickly as possible.  I get the sense that if this plan fails, BSA probably doesn't have enough in the tank to take another shot and may just go Chapter 7.  Perhaps this got TCC and others on board (along with the changes).

    2) It sounds VERY likely that the plan we see Monday is the plan.  The judge says in bankruptcy, settlements change; however, she indicated that at some point you need to stop.

    3) I believe the plan will be confirmed.  There will be more changes through the hearings.  However, I have the sense that the framework is there ... it is a matter some language here and there.  Perhaps even eliminating the $20K charge but make a tiered TDP.  Releases/injunctions may change a bit.  But overall, the plan will be close to the one Monday that is confirmed.

    4) The hearings will take a while ... 50 hours was mentioned but that may be on the low side.  March 9 it starts, guessing ... I think it takes a full 3 weeks then 1 week following to get a ruling.  My over/under for the ruling is April 6.

    5) This plan will be appealed (either to an appeals court first or just fight at district).  I have no idea what will happen there; however, if this plan is scuttled, I think it is more likely to be scuttled in district court than bankruptcy court.  In fact, I wouldn't be surprised if this happens.  If this happens on the Purdue Pharma timeline (and April 6 is correct guess) the plan could be overruled mid July.  

    Now assuming district confirms the bankruptcy, appeals could still happen, but at least the plan would be confirmed and BSA would start exiting bankruptcy.

    So ... my guess right now, is exit from bankruptcy (with district court approval) by August 1.  However, a lot of risk.

     

    • Upvote 3
  20. Sounds like hearing starts March 9 (2 week delay).  I missed parts of the hearing today, but it is clear that certain insurance companies, some COs (most notably Roman Catholic Church) and various claimants are objecting to the updated plan along with the US Trustee.

    BSA is running out of money.  TCC lawyers even indicated that any delay means less money left for the trust.  Opponents to the plan (most notably the US Trustee) said that is BSA's fault for wasting everyone's time this past summer.

    Judge made a reference that she doesn't want due process to be an issue during appeal, as she said she knows no matter what side she rules on during the hearing, there will be appeals.

    Judge encouraged parties to continue to meet to see if they can get objectors on board before the hearing.  Hard to see that as most want non debtors excluded.  Perhaps insurance companies could be brought in.

    A lot of discussion about the hearing.  No opening statements.  Closing statements will be oral.  Various other points made about how to handle the trial.

    One area the judge seems to be concerned about is the $20K fee ... why not just send everyone through TDPs.  We will see..

    I 100% believe she is open to including non debtors.  

    Plan and other documents must be filed by Monday.  Objections later.  Again, trial March 9.  A mention of 50 hours for a trial was thrown out but not agreed to.

    Also, they will likely have 1 day or a few hours of the trial for subset of claims (Oracle, AT&T, GSUSA, etc.).  Those that are not the primary part of the debate.

    Finally, claimants who have lawyers must have their lawyers represent them.  Any claimant that was to be part of the trial directly and testify, etc. will need to release their name publically.

     

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