Amide sexual-abuse lawsuits, the Boys Scouts of America, announced Feb. 18 that the national organization has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
The organization said in their official press release that they aim to achieve two critical objectives from this bankruptcy claim: equitably compensate victims who were harmed during their time in Scouting and continue carrying out its mission for years to come. The BSA intends to use the Chapter 11 process to create a Victims Compensation Trust that would provide equitable compensation to victims.
“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.”
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. 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.
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.
