Chapter 11 announced - Part 11 - Judge's Opinion

[ThenNow 1373]

12 minutes ago, MYCVAStory said:

Why didn't you send them out into a meeting room, or tell them to hammer it out overnight, and finalize it?" 

Ja. What was the longest hearing we've had to date? 7PM ET or so? Why did BSA proposed Wed? We had multiple hours today AND the mediation parties previously fell all over themselves (and each) lauding their their herculean endurance skills. I'm sure we recall with  deep reverence when they labored through the night while [*gasp*] the Super Bowl was being played. I'm shocked beyond recovery. Someone please bring me my fan and spirits of ammonia. Right quick...

[ThenNow 1373]

17 minutes ago, Eagle1993 said:

I still think 99% chance this is approved and agree, it should have been done tonight.

I was 99% sure about something once. That being, I'm wrong about 99% of the time. 

[MYCVAStory 687]

1 hour ago, Eagle1993 said:

Very good point.  I don't think the Guam claimants can disrupt this much.  However, if Century pulls out then the plan is dead.  Tanc made an ominous appearance just before the zoom call ended.  There is one piece that is being discussed that Tanc indicated was critical to not change materially.  The judge went back and forth with Tanc and she said as long as it is consistent with the plan she is fine.... and Tanc seemed to agree.  However, it was a bit disconcerting.  

Guam can disrupt this now, and later via appeal.  For them it has to be ALL about leverage.  The BSA wants a plan approved.  Century wants the BSA bill over with.  Tanc's appearance wasn't coincidental.  The BSA needs to make those two parties happy.  How does it do that?  Gets Century to set aside an amount to be paid to Guam as its bankruptcy slogs along?  Century offers to pay contribute less because it still has Guam exposure?  Then what?  Will the Survivor groups (TCC and Coalition) accept less money for all Survivors or more money for one group?  What if they split on that.  It's all about leverage and nothing increases leverage more than the 11th hour. 

 

[Wyobkr 22]

On 8/30/2022 at 12:14 PM, 1980Scouter said:

What do you think it costs to operate National for a month? 5 million? Under normal conditions not bankruptcy. 

BSA is require to file monthly operating reports at the end of each month.  There is a page in that report that provides operating costs.  Generally ranges from $8 to $11 million per month.  Was $134 million in all of 2021.  The report provides expenses without bankruptcy costs.  Interesting to see categories with net losses.   Of all things, high adventure has been big loser, but nationwide shut downs impacted that a lot.

 

[Wyobkr 22]

9 hours ago, Eagle1993 said:

Big change in BSA's financials.

17c7637d-c326-4612-9685-10cfeb89a4f0_10280.pdf (omniagentsolutions.com)

They transferred their entire Unrestricted RBT Balance to cash.  So, their cash went to $83.65M; however, their RBT Balance is now at $0.

The RBT is their "Retirement Benefits Trust".  

They also state they have $63M additional in cash set aside to pay JPM as they exit.

Their bankruptcy fees dropped (which is a bit odd).  THey showed a decrease of $5.9M in professional fees.  Total is now $362M.

 

And last year they did big transfer for insurance, etc. as they changed compensation.  The other elephant that doesnt seem to get much attention is payments coming due for Summit.  

 

[ThenNow 1373]

24 minutes ago, Wyobkr said:

Interesting to see categories with net losses.   Of all things, high adventure has been big loser, but nationwide shut downs impacted that a lot.

What is the typical attendance/use of the HABs by location? 

[ThenNow 1373]

https://www.reuters.com/legal/litigation/boy-scouts-nears-court-approval-23-billion-bankruptcy-settlement-2022-09-01/

[Eagle1970 210]

19 hours ago, ThenNow said:

I was 99% sure about something once. That being, I'm wrong about 99% of the time. 

Got you beat!  I was 99% sure about something twice.  What's the saying?  Fool me once?

[Eagle1970 210]

3 hours ago, ThenNow said:

https://www.reuters.com/legal/litigation/boy-scouts-nears-court-approval-23-billion-bankruptcy-settlement-2022-09-01/

The summary in this article amazes me.  "claims by more than 80,000 men who say they were abused as children by troop leaders."

I'm pretty sure I wasn't the only boy abused by a BSA employee at camp (especially since I witnessed him abusing another).  And apparently many claims are abuse by other scouts, though I can't really pin down the facts on that.  I just wish the media would think, then write.

[yknot 1338]

21 hours ago, MYCVAStory said:

  In the mean time, let's see if Century decides any sort of resolution isn't acceptable and pulls or lowers its offer because it will have continued exposure with Guam.  Then what dominoes fall?  Then who says "No DICE, NOT the deal we agreed to"  The 800-pound Gorilla is still sitting by patiently waiting to be addressed.  It wasn't today.  Should be an interesting weekend for the BSA's attorneys as they scramble to make this work.

My dim understanding is that BSA is also on the hook to make some kind of continuing future contributions to the settlement. If so, what happens if they are unable to do so? Does it matter? Somewhere buried in all the court documents was a restructuring plan that I thought was linked to a future contribution scheme. The business plan was based on certain membership numbers. BSA is currently far below the original membership number, although that doesn't seem to be widely known, and achieving the future projections outlined in its plan may be unsurmountable. If the membership numbers keep going down or remain flat when they have been projected to go up, does that have any bearing on things? Is that information that should be known by the judge? 

[fred8033 1591]

On 9/2/2022 at 12:12 PM, yknot said:

My dim understanding is that BSA is also on the hook to make some kind of continuing future contributions to the settlement. If so, what happens if they are unable to do so? Does it matter? Somewhere buried in all the court documents was a restructuring plan that I thought was linked to a future contribution scheme. ...

I've been following this from since it started.  I'm amazed how much I still hear that I did not know and still can't understand.

This is a bankruptcy.  Old company legally stops existing and a legally new company exits bankruptcy.  

QUESTION - Would be the post-bankruptcy (successful bankruptcy) BSA be able to have any future liability ?  I thought that violated the fundamentals of how bankruptcy works.

[ThenNow 1373]

1 hour ago, fred8033 said:

BSA be able to have any future liability ?

Looking backward, no. Forward, yes. Historical liabilities are released by the emergence and Phoenix rising. 

[1980Scouter 99]

On 9/1/2022 at 9:32 AM, Eagle1993 said:

Big change in BSA's financials.

17c7637d-c326-4612-9685-10cfeb89a4f0_10280.pdf (omniagentsolutions.com)

They transferred their entire Unrestricted RBT Balance to cash.  So, their cash went to $83.65M; however, their RBT Balance is now at $0.

The RBT is their "Retirement Benefits Trust".  

They also state they have $63M additional in cash set aside to pay JPM as they exit.

Their bankruptcy fees dropped (which is a bit odd).  THey showed a decrease of $5.9M in professional fees.  Total is now $362M.

 

I really think BSA running out of money before this is final is a big issue.  If they burn through 8-10 million a month on average that was suggested not including bankruptcy costs, 83 million will not last long. 

Rechartering will help and surely HAB's made profit but in the end this could drag on for some time even if the plan is approved. 

I wonder how much the BSA foundation has available to loan national? This could buy time.

 

[ALongWalk 85]

I am at the point of thinking there is no way National survives now. Sure hope that LC’s are discussing some sort of confederations that will allow Scouting to continue. 

[fred8033 1591]

8 hours ago, ThenNow said:

Looking backward, no. Forward, yes. Historical liabilities are released by the emergence and Phoenix rising. 

"Looking backward, no" ... Yep.  that's my understanding. 

"Forward, yes" ... I don't understand.  Are you saying the post-bankruptcy BSA would pay into the bankruptcy trust for abuse that happened after the bankruptcy?  ... I don't understand how that would work.  Mixing trust dollars targeting past abuse with some type of money / protection for abuse yet to happen?