A trial to determine whether the Boy Scouts of America's proposed reorganization plan should be approved is beginning more than two years after it sought bankruptcy protection amid an onslaught of child sex abuse allegations.
The reorganization plan includes contributions from the BSA, its roughly 250 local councils, insurance companies and others into a victims compensation fund of more than $2.6 billion. The trial in U.S. Bankruptcy Court in Delaware is expected to stretch over several weeks as attorneys and witnesses battle over a host of complex issues, including insurance rights, liability releases, the value of some 80,000 child sex abuse claims and how such a huge number of claims came to be filed.
The reorganization plan calls for the Boys Scouts and its roughly 250 local councils to contribute up to $786 million in cash and property and assign certain insurance rights to a fund for abuse claimants. In return, the BSA and councils would be released from further liability.
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