IRVING, Texas – The Boy Scouts of America announced that the national organization filed for Chapter 11 bankruptcy as a result of sexual abuse lawsuits.
The Boy Scouts stated in a press release that the bankruptcy filing is intended to “equitably compensate victims who were harmed during their time in Scouting and continue carrying out its mission for years to come.”
Scouting programs, including unit meetings and activities, council events, other Scouting adventures, and countless service projects, will continue throughout this process and for many years to come, BSA stated.
“The BSA fully intends to maintain its commitments to its members, families, volunteer leaders, employees, retirees, donors, and alumni to the fullest extent permitted by bankruptcy laws,” BSA added.
“The organization also will pay its vendors and partners for all goods and services delivered from today forward.”
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.”
More information and updates about the restructuring are available via the national organization’s dedicated restructuring website, www.BSArestructuring.org.
Victims, as well as vendors and other potential creditors who have questions about their claims may contact [email protected] or call 1-866-907-BSA1 for the fastest response.
The BSA is represented in the restructuring by Sidley Austin LLP as legal counsel and Alvarez & Marsal North America LLC, as a financial advisor.