BSA bankruptcy plan fails to gain support from victims
According to a preliminary vote count On Tuesday, the Boy Scouts of America failed to get the level of support they needed for a $ 2.7 billion settlement plan with victims of sexual abuse. The plan would take BSA out of bankruptcy.
Of the 53,888 applicants who voted, 73% voted in favor of the plan and 27% against.
Debtors in bankruptcy usually need the approval of 75% of creditors to come up with a deal, but cases involving massive tort liability such as child sexual abuse often need more support.
The current tally is not final and a final voting report is expected on January 17th.
“We are encouraged by these preliminary results and are actively engaging key parties in our case in the hope of securing additional agreements, which could potentially garner additional support for the plan before confirmation,” the Boy Scouts said in a statement.
The plan calls on the BSA and its local councils to create an $ 820 million cash and property fund for abuse seekers, including certain insurance rights. The organization and the boards would then be released from any liability for sexual abuse complaints.
The plan would be the largest comprehensive sexual abuse settlement in US history.
Official asylum seekers committee co-chair John Humphrey said survivors of abuse do not believe the plan offers them adequate compensation.
“The prospect of litigation against the BSA, its local councils, its accredited bodies and their respective insurers will not deter those who have spent their lives seeking justice,” Humphrey said in a statement. “The Boy Scouts are touting the plan and the settlements as historically high. Viewed from the perspective of the individual victim of violence, regulations are historically low. “
The BSA initially filed for bankruptcy protection in February 2020, following an increase in sexual abuse prosecutions after several states passed laws allowing accusers to prosecute decades-old allegations.
At the time, the BSA was facing 275 lawsuits. In bankruptcy case, he faces more than 82,000 sexual abuse complaints