FTI Consulting is handling the Chapter 11 filing of Boy Scouts of America as the 110-year-old group uses the process to create a Victims Compensation Trust to arrange financial settlements with the thousands of men who say they were molested by scoutmasters.
The filing lists BSA assets from $1B to $10B and liabilities from $500M to $1B.
The Associated Press compares the BSA sex abuse scandal to that of the Catholic Church outrage and predicts court proceedings “could be one of the biggest, most complex bankruptcies ever seen.”
The abuse fallout has cut the number of youths participating in BSA programs in half from more than 4M during the 1970s to less than 2M today. The BSA has tried to counter that decline by admitting girls to its program.
Roger Mosby, BSA CEO, said while the organization can’t undo the trauma suffered by victims of sex abuse, the proposed Trust will “provide equitable compensation to all victims while maintaining the BSA’s important mission.”
Local BSA councils are separate legal enties from Irving, TX-headquartered BSA. They are not involved in the Chapter 11 filing.