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Chapter 11 Announced - Part 4 Revised Plan


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@CynicalScouter Thanks from me and frankly, surely everyone, for tracking on the status of National's bankruptcy pleadings, and the procedural steps, past and pending, in the Bankruptcy case. And your

Okay. Enough. If you aren't talking about court proceedings then drop it.  It would be a shame to lock this thread now.

A few random observations from watching this bankruptcy unfold over the past several months: The focus has clearly been on protecting the national organization first and then the local councils.

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It appears BSA took out a loan from Arrow WV to help pay for the settlement.  
 

Local Counicls now must provide $300M is cash and $200M in appraised land.  
 

many other changes…

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1 hour ago, Eagle1993 said:

Local Counicls now must provide $300M is cash and $200M in appraised land.

Did anyone happen to see or calculate an average of the per LC net assets from the BSA summary statements? Very curious how the averages compare. The contribution side is going to be very small in comparison, me thinks. And then, those asset numbers are from the BSA and not BRG. (The contribution side is about $1.8M, yes?)

Edited by ThenNow
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Ok ... that loan to the settlement trust will be paid annually the total of :

$4.5M

plus $3.50 for every scout in BSA as of Dec 31 from the prior year

$50 for every scout that went to a HA base the prior year

$50 for every scout above the initial business plan excluding ScoutReach 

$150 for every scout going to a HA base above the business plan

Hmmm ... this looks to me, that BSA better not grow above their business plan.  IF they do, they will be paying a TON to the settlement.

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TCC & BSA appear to have reached a comprise over the restricted assets & HA bases.  

  • BSA agreed to reduce the minimum amount of unrestricted cash/investments from $75M to $25M.
  • Fund a $80M Note (which has the payment schedule I documented above)

So that is how they got to the ~$130M.  A loan with a payment schedule and selling off $50M of investments.

With this deal, HA bases will remain with BSA.  However, BSA will exist more in debt (add $80M to the JPM debt) and with far fewer assets (both at National & LCs).

 

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15 minutes ago, ThenNow said:

This is key:

Quote

In January, the Michigan State Police notified Dana Nessel’s office that 1,700 of those sex-abuse claims were in the state. Her office said it now thinks that up to 3,000 victims were abused in the state.

For those trying to use the 84,000 as the metric for the amount of abuse in BSA, this is once again a reminder that number should NOT be used and was/is an undercount.

As the article noted, statutes of limitations may be an issue, but I do believe a report about BSA's activities in Michigan and covering up child sexual abuse, similar to the PA grand jury report on child sexual abuse in the Catholic dioceses in that state, will be helpful to everyone. It will lay out for BSA exactly what it has to do to regain trust of anyone. It will hopefully prompt legislators to examine reporting laws, etc.

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1 hour ago, ThenNow said:

Could you please explain some legalese to me. The bankruptcy ends civil action but the MI AG is thinking about criminal prosecution? (I couldn't read the entire first article). I really am clueless about this area. I guess this means we will find out who knew what when?

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Has anyone seen a breakdown of what each LC will be expected to contribute in terms of cash and property on the latest agreement? This would be a game changer to know which properties must go and how much each council much pay.

I am sure it varies widely depending on claims and council size, assets.

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1 hour ago, MattR said:

The bankruptcy ends civil action but the MI AG is thinking about criminal prosecution? (I couldn't read the entire first article). I really am clueless about this area. I guess this means we will find out who knew what when?

Simply, yes. The criminal investigation into the organization is not bound by the channeling injunction coming out of the bankruptcy. That bar is all about civil suits. I've heard from friends and family in other states who will be taking the MI investigation example to their representatives and contacting their AG's to encourage similar investigations. I think so.

You didn't get full access?

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1 hour ago, 1980Scouter said:

Has anyone seen a breakdown of what each LC will be expected to contribute in terms of cash and property on the latest agreement? This would be a game changer to know which properties must go and how much each council much pay.

I am sure it varies widely depending on claims and council size, assets.

We should know soon.  I'm not sure if the status is a detailed look or a % of the total amount.  

Quote

The Debtors shall, concurrently with the filing of the Plan Supplement, file a report with the Bankruptcy Court concerning the status of the parties’ efforts to obtain contribution commitments from the Local Councils. In addition, the status report will set forth any required amendments the Debtors may propose to the Plan to facilitate the Local Council Settlement Contribution. The Local Council Settlement Contribution shall consist of: (1) at least $300 million of Cash to be paid on the Effective Date; and (2) properties with a combined Appraised Value (as defined below) of $200 million as described below (the “Property Contribution”) (provided that this $200 million aggregate amount shall be reduced on a dollar-for-dollar basis by any Cash payment amount in excess of $300 million).

 

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I don't know about my fellows, but I felt pretty darn gut punched when I got up this morning. Not what I had hoped for or expected. More to be reveal, I suppose and then the insurance circus. I don't feel like the LC contribution is adequate. Not at all. The breakdown/breakout, if we see it, will be telling. I doubt more comforting, but informative.  

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6 minutes ago, ThenNow said:

Simply, yes. The criminal investigation into the organization is not bound by the channeling injunction coming out of the bankruptcy. That bar is all about civil suits. I've heard from friends and family in other states who will be taking the MI investigation example to their representatives and contacting their AG's to encourage similar investigations. I think so.

You didn't get full access?


@ThenNow ... So, civil liability was retroactively extended as Supreme Court applied a difference between civil and criminal.  Criminal cases were still bound by SOLs.  So, are corporate criminal cases also bound by SOL?  Or is there a SOL difference between human criminal cases versus a corporate criminal case?  

It seems then that we are bound by only recent criminal activity.  For example, what is the SOL for the appropriate criminal activity for not reporting.   Sexual abuse cases have extended SOLs, such as memory + years or adult + years.  But what about failure to mandatory report?  

Essentially, what crime and what look back window?  It seems the SOL starting point is NOW and then minus the window.  7 years.  10 years?  15 years?  I'm hoping BSA was following the appropriate state law for the that time window.  When did MI make youth program leaders mandatory reporters?  

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