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Law360: Boy Scouts To File New Ch. 11 Docs With Two Plan OptionsApril 12, 2021
After failing to negotiate a global resolution to its bankruptcy crisis in the wake of sexual abuse allegations, the Boy Scouts of America will file a dual-track Chapter 11 plan to stay on schedule for a financial restructuring by summer’s end, this article reported.
The Boy Scouts previously filed a bankruptcy plan that included local chapter contributions to the final settlement with abuse victims. This original plan comprises one-half of the new submission, with the alternative omitting both local chapter involvement and a centralized distribution mechanism for settlement fees. The dual-track filing enables mediation to continue without the need to re-file should an agreement be made on either of the two main tracks in the near future, Law360 noted.
O’Melveny partners Tancred Schiavoni and Gary Svirsky represent insurers in the matter, along with associate Andrew Kirschenbaum.
Law360 subscribers can read the full article here.