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Boy Scouts Set to Exit Bankruptcy After $2.46 Billion U.S. Sex Abuse Settlement Approved

Submitted by jhartgen@abi.org on

The Boy Scouts of America secured approval of a $2.46 billion reorganization plan from a bankruptcy judge on Thursday that will allow the youth organization to exit chapter 11 and settle decades of claims by more than 80,000 men who say they were abused as children by troop leaders, Reuters reported. Bankruptcy Judge Laurie Selber Silverstein in Wilmington, Del., signed off on the restructuring plan after the Boy Scouts made changes to address portions of a previous settlement proposal she had rejected. The biggest change in the amended plan was the removal of a $250 million settlement payment from the Church of Jesus Christ of Latter-day Saints, which Judge Silverstein refused to approve. Judge Silverstein said that part of that settlement proposal went too far in attempting to protect the Mormon church from abuse claims that were only loosely connected to scouting activities. The Irving, Texas-based organization has said the reorganization will allow it to continue its scouting mission free from the threat of costly litigation.