A key hearing earlier than a Delaware choose may decide whether or not the Boy Scouts of America would possibly be capable to emerge from bankruptcy later this year.
The Boy Scouts, based mostly in Irving, Texas, sought bankruptcy safety in February 2020 amid an onslaught of lawsuits by males who stated they have been sexually abused as youngsters.
Tuesday’s hearing was scheduled greater than a month in the past. It was known as for the choose to contemplate whether or not the Boy Scouts’ clarification of a reorganization plan, filed in July, contained enough element for abuse claimants to make knowledgeable choices on whether or not to just accept it.
But a number of key stakeholders are asking the choose to postpone the hearing for no less than three weeks to permit them time to review and file objections to a brand new plan that was filed simply days in the past. The delay is being sought by the official victims committee, together with a number of legislation corporations and insurance coverage firms.
US Bankruptcy Judge Laura Selber Silverstein should determine whether or not to grant the postponement or proceed with the hearing on a disclosure assertion outlining the BSA’s reorganization plan. That hearing may final a number of days.
Two of the main modifications in the brand new plan are settlement agreements involving one of many group’s main insurers, The Hartford, and its former largest troop sponsor, the Church of Jesus Christ of Latter-day Saints, generally generally known as the Mormon church.
The Hartford has agreed to pay $787 million right into a fund for sexual abuse claimants, and the Mormon church has agreed to contribute $250 million. In change, each entities can be launched from any additional legal responsibility involving baby intercourse abuse claims filed by males who stated they have been molested a long time in the past by scoutmasters and others.
The official victims committee describes the settlements as “grossly unfair.”