Amid a series of lawsuits alleging sexual abuse, the Boy Scouts of America (BSA) has filed for Chapter 11 bankruptcy, according to a statement released by the organization today, Tuesday (Feb. 18).
According to the statement, “the BSA intends to use the Chapter 11 process to create a Victims Compensation Trust that would provide equitable compensation to victims.”
The statement added that local Boy Scout troops won't be affected by the bankruptcy filing.
“Local councils, which provide programming, financial, facility and administrative support to scouting units in their communities, have not filed for bankruptcy," said the statement from the national organization. "They are legally separate, distinct and financially independent from the national organization.”
It is unclear how the filing will affect the organization’s ownership of its Philmont Scout Ranch in Northern New Mexico. BSA mortgaged the property in November 2019 to help secure a line of credit but said at the time it had no plans to sell the property.
This is a developing story and will be updated as more information becomes available.
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