The Boy Scouts of America national organization has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
The organization filed to achieve two key objectives: equitably compensate victims who were harmed during their time in Scouting and continue carrying out its mission for years to come. The BSA intends to use the Chapter 11 process to create a Victims Compensation Trust that would provide equitable compensation to victims.
Scouting programs, including unit meetings and activities, council events, other Scouting adventures and countless service projects, will continue throughout this process.
Local councils, which provide programming, financial, facility and administrative support to Scouting units in their communities, have not filed for bankruptcy. They are legally separate, distinct and financially independent from the national organization.
“The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting. We are outraged that there have been times when individuals took advantage of our programs to harm innocent children,” said Roger Mosby, president and Chief Executive Officer. “While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process – with the proposed Trust structure – will provide equitable compensation to all victims while maintaining the BSA’s important mission.”
Tragically, there have been times when individuals took advantage of the BSA’s programs to harm children. The BSA firmly believes that a proposed Victims Compensation Trust structure is the best means of compensating victims in a way that is equitable and protects their identities. The BSA encourages victims to come forward to file a claim as the bankruptcy process moves forward and will provide clear and comprehensive notices about how to do so.
The BSA has, for years, funded in-person counseling for any current or former Scout who was a victim of abuse as well as victims’ family members, by a provider of their choice. As an extension of this commitment to supporting victims, the BSA recently announced a partnership with 1in6, a trusted national resource for male survivors, to expand their services so that victims of abuse are able to anonymously access vital support from trained advocates when and how they need it. Victims can access 1in6 services at www.1in6.org/BSA. This is a multiyear commitment, which the BSA feels is an important component of its ongoing efforts to support victims.
The BSA is represented in the restructuring by Sidley Austin as legal counsel and Alvarez & Marsal North America as financial advisor.
