Boy Scouts bankruptcy plan headed to federal appeals court

By RANDALL CHASE
Associated Press

DOVER, Del. (AP) — Attorneys for several insurance companies are appealing a federal judge’s decision to uphold the confirmation of a $2.4 billion bankruptcy reorganization plan for the Boy Scouts of America. Attorneys for non-settling insurers filed an emergency motion asking the judge to halt the effect of a ruling he issued Tuesday while they take their case to the Third U.S. Circuit Court of Appeals. The BSA’s bankruptcy plan aims to allow the Texas-based organization to keep operating while ensuring compensation for tens of thousands of men who say they were sexually abused as children while involved in Scouting. The judge rejected arguments that the bankruptcy plan wasn’t proposed in good faith and improperly strips insurers and abuse survivors of their rights.