Attorneys for the Boy Scouts of America are postponing a key bankruptcy hearing that was scheduled to start this week, following a court ruling that casts uncertainty on the future of the case.
Attorneys on Friday filed court papers postponing a hearing until Sept. 21 that had been set to begin Wednesday. The hearing is to determine whether the judge approves a disclosure statement that explains the Boy Scouts’ reorganization plan to creditors. Approval of the disclosure statement is required before creditors can vote on the plan.
The move comes one day after the judge approved BSA’s proposal 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 and others. Importantly, however, she rejected two key provisions of the deal, potentially jeopardizing the agreement that the Boy Scouts had been hoping to use as a springboard to emerge from bankruptcy later this year.
Read the source article at Insurance Journal