Chapter 11 Announced - Part 5 - RSA Ruling

[CynicalScouter]

23 minutes ago, Eagle1993 said:

If TCC objects along with other attorneys it could fail when it goes to vote.  BSA really needs the TCC onboard.  This will be a disaster if a plan goes to vote and that vote fails.  

Cramdown?

[CynicalScouter]

TCC's response: they are livid.

News reports confirm we should see a plan late tonight.

https://lasvegassun.com/news/2021/sep/15/boy-scouts-settlements-reached-with-major-insurer-/

Quote

The proposed settlements are opposed by the official victims committee appointed by the U.S. bankruptcy trustee, as well as law firms separately representing hundreds of men who have filed sexual abuse claims. Representatives of the official victims committee described the proposed settlements as “grossly unfair.”

“The only winners in this latest proposal are the Boy Scouts, their local councils, the Mormon Church, and the Hartford insurance company,” Michael Pfau, an attorney whose firm represents more than 1,000 abuse claimants in the bankruptcy, said in a prepared statement.

“The Boy Scouts are offering abuse survivors a fraction of what their cases are worth and the assets available to pay them,” Pfau added. “The Mormon church is reported to have roughly $100 billion in assets, but it is offering a paltry $250 million to compensate the thousands of abuse survivors who were abused in Mormon Boy Scout troops by Mormon Scout leaders.”

 

Edited September 15, 2021 by CynicalScouter

[Eagle1993]

I’m somewhat hopeful; however, for some reason I feel more pessimistic than I did last week.   Perhaps I’m overthinking this but I tend to think we may still be a ways from a final solution.  To me, the LDS payout is the big hurdle, followed by Hartford.

1) The TCC carries a ton of influence. I expect the judge will question why the Coalition supports it vs the TCC.  At minimum, TCCs non support will impact the vote. Coalition will have to defend that they are representing their clients and not their financial backers.
 

2) US Trustee will likely object.  In the Purdue Pharma the US Trustee objected and now has asked for the approved plan to be stayed as they are appealing. Even if this gets approved, expect appeals and delays.  
 

3) Purdue Pharma judge Drain made changes to the plan and was slightly hesitant approving it.  That plan had 95% claimants approving.  The BSA judge doesn’t want the BSA to end, but if she is absolving the liability of insurance companies, National, LCs, COs …. she will be extremely cautious.  
 

The big pots of money are now gone and the total payout for most victims will be peanuts with no hope of further payouts in state courts.   If there was some big potential targets post bankruptcy we may have had a better shot of getting this through now.  

By adding a CO and including Hartford this case got more complicated which may not speed up closure.

I tend to think now that the TCC and lawyers that have state court filings are going to fight tooth and nail against the deal.  The judge has had almost no sympathy for the Coalition, we will see what she thinks of the TCC.

[Eagle1993]

 

Started new thread here