Stamford Advocate

Group gets conditiona­l approval of $850M bankruptcy deal


A bankruptcy judge Thursday approved a proposal by the Boy Scouts of America to enter into an agreement that includes an $850 million fund to compensate tens of thousands of men who say they were sexually abused as youngsters by scout leaders.

But the judge also rejected two key provisions of the deal, potentiall­y jeopardizi­ng the agreement that the organizati­on had been hoping to use as a springboar­d to emerge from bankruptcy later this year.

Following three days of testimony and arguments, Judge Laura Selber Silverstei­n granted the BSA’s request to enter into an agreement involving the national Boy Scouts organizati­on, roughly 250 local Boy Scout councils, and attorneys representi­ng some 70,000 men who say they were sexually abused as youngsters decades ago while engaged in Boy Scout-related activities. The agreement calls for the Boy Scouts and local councils to contribute $850 million into a fund for abuse claimants.

The agreement was opposed by insurers who issued policies to the Boy Scouts and local councils, attorneys representi­ng thousands of other abuse victims, and various church denominati­ons that have sponsored local Boy Scout troops.

It was not immediatel­y clear how Thursday’s ruling will affect the future of the bankruptcy case, given that she rejected two significan­t provisions in the restructur­ing support agreement, or RSA.

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