Boy Scouts bankruptcy: Reorganization plan ‘woefully’ inadequate


Boy Scouts of America is proposing to pay $220 million toward a trust to compensate tens of thousands of former members who say they were abused during their time as scouts, according to a statement from the committee that represents survivors in the case.

Another $300 million may come from a voluntary contribution from local councils, the Boy Scouts said in court documents filed Monday, but the local organizations have given no formal commitment.

The number is a fraction of the $1 billion of the organization’s estimated value, and a sliver of the value of its subsidiaries, including local councils as well as various trusts and endowments, which USA TODAY estimates could exceed $3.7 billion.  

The proposal is part of a reorganization plan put forth by the nonprofit detailing how it intends to handle the massive child sex abuse case that’s threatening its existence – the largest ever involving a single national organization – and emerge as a viable entity. 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *