Crucial hearing in Boy Scouts bankruptcy proceedings

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An important hearing in front of a judge in Delaware could determine whether the Boy Scouts of America could get out of bankruptcy later this year.

The Boy Scouts, based in Irving, Texas, filed for bankruptcy protection in February 2020 amid a spate of lawsuits from men alleging sexually abused as children.

Tuesday’s hearing was scheduled more than a month ago. The judge was asked to consider whether the Boy Scouts’ statement of reorganization plan filed in July contained sufficient detail for the abuse prosecutors to make informed decisions about the adoption.

However, several key stakeholders are urging the judge to postpone the hearing for at least three weeks to give them time to review a new plan that was filed just a few days ago and to raise objections. The delay is requested by the Official Victims Committee, as well as several law firms and insurance companies.

The US bankruptcy judge Laura Selber Silverstein must decide whether to allow the postponement or continue the hearing on a disclosure statement about the reorganization plan of the BSA. This hearing could take several days.

Attorney Tim Kosnoff, left, speaks during a press conference held by the Abused in Scouting legal team in 2019.
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Two of the key changes in the new plan are settlement agreements between one of the organization’s largest insurers, The Hartford, and its former largest troop sponsor, The Church of Jesus Christ of Latter-day Saints, commonly known as the Mormon Church.

Hartford has agreed to contribute $ 787 million to a fund for sexual abuse defendants, and the Mormon Church has agreed to contribute $ 250 million. In return, both companies would be relieved of any further liability related to child sexual abuse lawsuits filed by men who claimed to have been molested by Boy Scouts and others decades ago.

The official victim committee describes the settlements as “grossly unjust”.


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