BSA bankruptcy plan misses mark in vote by abuse claimants

DOVER, Del. (AP) — A preliminary voting report in the Boy Scouts of America bankruptcy indicates the group’s reorganization plan has failed to win the desired support from tens of thousands of men who say they were sexually abused as children.

The report, filed late Tuesday night, shows 73% of 53,888 valid ballots were cast in support the plan, with just under 27% against. The Boy Scouts were hoping to garner at least 75% of the vote.

Debtors in bankruptcy typically need two-thirds approval from creditors for a reorganization plan, but cases involving mass tort liabilities, whether stemming from asbestos or child sexual claims, generally need a greater level of support.

A final voting report is due Jan. 17, but the initial results could spell trouble for the Boy Scouts of America's goal of compensating survivors for decades of child sexual abuse by Scoutmaster and others while being able to emerge from bankruptcy on sound financial footing and continue the Scouting movement.

“We are encouraged by these preliminary results and are actively engaging key parties in our case with the hope of reaching additional agreements, which could potentially garner further support for the plan before confirmation,” the Boy Scouts said in a statement.

Opponents of the plan, including the official committee appointed to represent all abuse claimants, said the vote shows the Boy Scouts’ proposal was inadequate.

“This was a poorly constructed plan driven by a group of lawyers who wanted to achieve a quick, cheap bankruptcy settlement,” said Jason Amala, an attorney whose law firm represents more than 1,000 claimants. “Many of these law firms signed up clients under engagement letters where they did not even agree to represent their client if the case had to be pursued outside of...