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Boy Scouts submit plan to bankruptcy court; includes victims' trust fund, Norman Rockwell paintings

Boy Scouts Bankruptcy
Posted at 1:02 PM, Mar 02, 2021
and last updated 2021-03-02 13:02:42-05

DOVER, Del. — The Boy Scouts of America has submitted a bankruptcy reorganization plan that envisions continued operations of its local troops and national adventure camps but leaves many unanswered questions about resolving tens of thousands of sexual abuse claims by former Boy Scouts.

The plan was filed Monday, even though the BSA remains in intense negotiations with insurers over sexual abuse claims and with the official committee representing abuse victims.

The plan includes a pledge to create a victims' trust fund, with $300 million coming from a combination of money from local councils, proceeds from insurance policies, and the sale of a collection of Norman Rockwell oil paintings.

The BSA says the plan demonstrates progress as it works to compensate abuse victims and address finances so it can continue operating.

An attorney for hundreds of former Scouts calls the plan woefully inadequate.

The BSA filed for bankruptcy protection last year as a wave of new sex abuse lawsuits were filed in several states. The action puts a hold on hundreds of pending lawsuits to allow for a potential larger settlement.

At the end of last year, more than 92,000 victims had come forward, according to the LA Times.