On March 31, 2023, a group of certain nonsettling insurers filed an emergency motion to stay the effectiveness of District Judge Richard G. Andrews’ order affirming on appeal the Boy Scouts of America plan confirmation order and the plan confirmation order itself pending “resolution of all appeals” to the U.S. Court of Appeals for the Third Circuit. The certain insurers argue that absent a stay pending appeal, the automatic stay will expire after April 11, at which point BSA may contend that further appeals by appellants are equitably moot. The risk that BSA may seek to moot the appeals is “imminent and concrete because BSA will attempt to substantially consummate its plan as soon as possible,” the certain insurers warn.

More detailed information has been shared with our members.  To join go to https://scoutcouncils.org/join

The U.S. District Court for the District of Delaware District Court Judge Richard G. Andrews affirmed the Boy Scouts of America debtors’ plan confirmation in the attached opinion issued today, finding “no error” in the bankruptcy court’s legal conclusion.

More information will follow as it becomes available.    You may want to share this information with your council attorneys.  We are sharing this link with all members of the Association as well as non-members associated with the Local Council Working Group.  

Boy Scouts affirmation.pdf

The Annandale United Methodist Church (AUMC) has chartered Boy Scout Troop 150 since 1928, but when that relationship had to end earlier this year, the Annandale Rotary Club agreed to sponsor the troop.

The change comes as a result of the Boy Scouts of America (BSA) filing for bankruptcy in February 2022 due to the lawsuits by men who alleged they were sexually abused by scout leaders.

The national United Methodist Church organization, concerned about liability exposure, said individual Methodist churches can no longer serve as chartering organizations for scout troops. Instead, churches can now form affiliate relationships with troops.

The Annandale Rotary Club agreed to take responsibility for Troop 150 because “they do great work. They make a difference in the community,” said club President Joe Do. He pointed to the Scouting for Food program where Troop 150 members collected thousands of pounds of food for the Annandale Christian Community for Action food pantry.

Read the rest of this article by clicking here.  

The U.S. House of Representatives passed a resolution supporting a "Boy Scouts of America Day."  Read more at Aaron on Scouting by clicking here.  

District Court Judge Richard G. Andrews took the Boy Scouts of America debtors’ plan confirmation appeal under advisement at the end of oral argument today, saying his decision is “gonna take some time.”

The main focus of today’s hearing, the second of two days of oral argument after Thursday’s initial proceedings, was on the plan’s third-party releases and channeling injunction, which is the basis for appeal for two groups of dissenting sexual abuse claimants. The claimants are challenging the scope of the nonconsensual third-party releases, which extends protection to local councils and chartered organizations. The debtors and plan proponents argue that without the releases, the entire plan construct would fall apart.  More detail was shared with Association members by the Legal Committee of the Association.  

The first of two days of hearings on the appeal of the confirmation of the  Boy Scouts of America bankruptcy plan was completed before the U.S. District Court for the District of Delaware on Thursday, February 9, 2023.  The arguments for the day focused on whether the plan was proposed in good faith and issues related to insurance.  Arguments for Friday, February 10, 2023 are set to address third-party releases and the channeling injunction; insurance settlements; whether the plan infringed the automatic stay in the Archbishop of Agana's bankruptcy; and the best interest of creditors test, claim classification, equal treatment and process concerns regarding various amendments to the plan.  More detail was shared with Association members by the Legal Committee of the Association.  We continue to be optimistic about these hearings. 

Congratulations to the Boy Scouts of America for exceeding the 2022 membership goal--the first time since 1999 that the BSA has had membership growth. This is possible because of the hard work of council volunteers and professionals across the nation.  https://vimeo.com/780761011

We have officially reached $515 million in cash and property contributions to the Settlement Trust! 

As of today, we can report to the Delaware District Court that we have fully funded the $515 million Local Council Contribution as required under the bankruptcy plan.  We will urge the Court to quickly affirm so that these funds can be released, survivors can be compensated, and the Scouting movement can continue its critical mission serving youth.

Please feel free to notify your Boards, volunteers, employees, and others of this incredible milestone!

The Ad Hoc Committee has strived to be transparent throughout this entire process:  There are two Local Councils that have not yet completed their full contribution amounts under the Formula.  The Ad Hoc Committee is working with them to finish funding in the coming weeks.  As previously discussed, the Formula includes a razor-thin cushion – ~0.5% (half of one percent) – and any amounts contributed over $515 million reduce the DST Note dollar-for-dollar, meaning that when these two councils finish funding, all Local Councils effectively receive a reduction of their obligations under the Plan.  As a matter of fairness, we are committed to ensuring that all Local Councils meet their contribution amounts – and we fully expect that will happen.

Though the past three years have been challenging, the Scouting movement has stood together.  Our collective efforts have paved the way for a fair and final resolution of historical abuse claims and an exit from bankruptcy.  As all of us know, Scouting is safer than ever today, and will continue to be a leader in youth protection going forward.  We can now focus on the future: keeping Scouts safe and continuing to provide an unparalleled, values-based program to millions of youth. 

The Ad Hoc Committee will keep you updated on the appellate/affirmation process.  In the meantime, we wish you all a very happy Thanksgiving!

Yours in Scouting,

Ad Hoc Committee of Local Councils

The United States Bankruptcy Court for the District of Delaware entered a confirmation order of the Third Modified Fifth Amended Chapter 11 Plan of Reorganization (with technical modifications) on Thursday, September 8, 2022 (Docket Number 10316).  

DOVER, Del. (AP) — A Delaware bankruptcy judge has approved parts of the Boy Scouts of America’s reorganization plan but has rejected other provisions, saying in a ruling Friday that the organization has “decisions to make” regarding the plan.

Judge Laurie Selber Silverstein issued her 281-page ruling, months after concluding a trial in the case. She indicated that she is willing to hold a status conference upon a request by attorneys for the Boy Scouts.

The BSA’s plan proposed the creation of a $2.6 billion fund to compensate tens of thousands of men who say they were sexually abused as children involved in Scouting, while maintaining the organization’s financial ability to continue operating.

The ruling is the just latest example of uncertainty in a case that has seen myriad twists and turns since the Boy Scouts sought bankruptcy protection more than two years ago to stave off a flood of lawsuits alleging child sexual abuse by Scout leaders and volunteers.

Click here to read more.