Closing arguments are underway in the Boy Scouts of America bankruptcy case
DOVER, Del. — — Following a three-week trial, a Delaware judge began hearing closing arguments Wednesday in the Boy Scouts of America bankruptcy case.
The reorganization plan calls for the Boys Scouts, its 250 local councils, and certain insurance companies and troop sponsoring organizations to contribute some $2.6 billion in cash and property into a compensation fund for abuse victims. Wednesday’s arguments did not address those issues but instead mostly involved supporters defending the plan as having been developed in “good faith,” and the trust distribution procedures as appropriate. Opponents of the plan will present counterarguments Thursday.
But Silverstein pushed back repeatedly on plan supporters, questioning what provisions of the bankruptcy code would apply to the findings they seek. She noted that she is not being asked to approve any specific claim settlement, as is often done in bankruptcies, and suggested that the plan supporters’ arguments instead involve treatment of claims, which is a different issue with a different approval standard.
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