On March 1, 2021, the Boy Scouts of America announced its proposed Plan of Reorganization, which outlines how it wishes to provide monetary compensation for victims who filed claims in the Boy Scouts bankruptcy.
The proposed plan includes the following:
- About $220 million from the Boy Scouts of America.
- An estimated $300 million comprised of voluntary contributions from individual chapters.
- Original artwork from artists including Norman Rockwell and Walt Disney.
- Two BSA facilities, located in Texas.
- Properties associated with the BSA’s gas and oil interests.
What the Plan Means for Victims Who Have Filed Claims
If you’ve filed a claim against the Boy Scouts of America and are awaiting information on what this plan means for you, there’s one important thing to understand right now: The reorganization plan is only the first step in a longer process.
As of the time of this writing, we are still waiting on insurance companies and sponsoring organizations to disclose their proposed contributions, which will substantially increase the settlement trust.
Also, please keep in mind that the proposed reorganization plan has not yet been approved.
For the reorganization plan to be made final, it must be approved by the Court. Before the Court will approve it, victims must first vote on the plan—and a plan that insufficiently compensates victims is likely to fail.
There will be lengthy negotiations about voting procedures before the voting process can begin. When those procedures are defined, Hurley McKenna & Mertz will offer its clients advice about voting and a complete analysis of the proposed plan so you can cast an informed vote.
There is No Action Needed From Victims Yet
Right now, victims who have filed claims need not take action. It will still take some time before the bankruptcy process moves ahead and you collect the compensation you are deserved.
If you are a victim, do not worry about the monetary figures you’re hearing about in the news. The Court’s process is lengthy and thorough, and the final amount owed to each victim will probably change many times before it becomes final. If you’re a client of Hurley McKenna & Mertz, visit our Boy Scouts website page for the most up-to-date information and contact us with any lingering questions.