Boy Scouts Bankruptcy Won't Affect Montgomery County Troops

SILVER SPRING, MD — The Boy Scouts of America announced Tuesday that the organization's bankruptcy filing will not affect local councils that provide programming, facility, administrative, and financial support to scouting units.

"Scouting programs will continue throughout this process and for many years to come," the 110-year-old youth organization said in a statement. "Local councils are not filing for bankruptcy because they are legally separate and distinct organizations."

Facing hundreds of sex-abuse lawsuits, Boy Scouts of America filed for Chapter 11 protection to create a trust that would "equitably compensate victims who were harmed during their time in Scouting" and preserve its mission for years to come, the organization said in a statement.

The national organization of the BSA filed for Chapter 11 bankruptcy in order to equitably compensate victims who were harmed during their time in Scouting and ensure Scouting’s future. Scouting continues and local councils have not filed for bankruptcy. https://t.co/sj4TRXkzp1.
— Boy Scouts - BSA (@boyscouts) February 18, 2020

"The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting. We are outraged that there have been times when individuals took advantage of our programs to harm innocent children," said Boy Scouts President and CEO Roger Mosby. "While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process – with the proposed Trust structure – will provide equitable compensation to all victims while maintaining the BSA's important mission."

By going to bankruptcy court, the leadership group — which has 2.2 million youth members between the ages of 5 and 21 — can temporarily freeze ongoing litigation. But there's a chance Boys Scouts would be forced to sell some of their campgrounds, hiking trails, and other properties to raise money for the victims' compensation plan, according to The Associated Press.

The bankruptcy petition listed the Boy Scouts' assets as between $1 billion and $10 billion, and its liabilities at $500 million to $1 billion, AP reports.