Preview
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
NEW YORK STATE SUPREME COURT
ONEIDA COUNTY
-------------------------------------------------------------------- x
MGD-15 DOE, : Index No.: EFCA2021-001625
Plaintiff,
:
-against-
:
:
LEATHERSTOCKING COUNCIL, BOY SCOUTS OF
AMERICA, and NEW HARTFORD POST NO. 1376 :
INCORPORATED THE AMERICAN LEGION,
DEPARTMENT OF NEW YORK, :
Defendants.
---------------------------------------------------------------------
NOTICE OF ENTRY OF ORDER APPROVING SIXTH STIPULATION BY AND
AMONG BOY SCOUTS OF AMERICA, THE OFFICIAL COMMITTEE
OF SURVIVORS OF ABUSE AND THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS MODIFYING THE CONSENT ORDER
GRANTING THE BSA’S MOTION FOR A PRELIMINARY INJUNCTION
PURSUANT TO 11 U.S.C. §§ 105(a) AND 362 AND FURTHER EXTENDING
THE TERMINATION DATE OF THE STANDSTILL PERIOD
Defendant Boy Scouts of America (the “BSA”), by and through the undersigned counsel,
hereby provides notice of the entry of the Order Approving Sixth Stipulation By and Among Boy
Scouts of America, the Official Committee of Survivors of Abuse and the Official Committee of
Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for a Preliminary
Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the Termination
Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.) [Adv. Dkt.
No. 199] (the “Order Approving Sixth Stipulation”) entered by the United States Bankruptcy
Court for the District of Delaware (the “Bankruptcy Court”) on November 8, 2021 further
extending the stay of proceedings in this action as against Defendants Leatherstocking
Council, Boy Scouts of America and New Hartford Post No. 1376 Incorporated the
1 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
American Legion, Department of New York up to and including the date of the first
omnibus hearing after the Bankruptcy Court issues its decision confirming or denying
confirmation of the Plan, 1 subject to further extension by the Bankruptcy Court. A true and
correct copy of the Order Approving Sixth Stipulation is attached as Exhibit A hereto.
BACKGROUND
1. On February 18, 2020 (the “Petition Date”), voluntary petitions for relief under
Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) were filed in the
Bankruptcy Court by the BSA and Delaware BSA, LLC (together with the BSA, the “BSA
Debtors”) (Case No. 20-10343) (LSS) (Jointly Administered).
2. On the Petition Date, the BSA commenced an adversary proceeding in the
Bankruptcy Court by filing a Verified Complaint for Injunctive Relief (Adv. Proc. Case No. 20-
50527, Adv. Dkt. No. 1) pursuant to Federal Rules of Bankruptcy Procedure 7001(7) and 7065
and sections 105(a) and 362 of the Bankruptcy Code. Also on the Petition Date, the BSA filed a
Motion for Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 (Adv. Proc. Case
No. 20-50527, Adv. Dkt. No. 6, the “Preliminary Injunction Motion”), seeking a preliminary
injunction over certain actions pending around the country (the “Pending Abuse Actions”), as
against certain non-debtor co-defendants.
3. On March 5, 2020, the United States Trustee for the District of Delaware
appointed two official statutory committees: (i) an Official Committee of Unsecured Creditors
(the “UCC”); and (ii) an Official Committee of Tort Claimants (the “TCC”, together with the
UCC, the “Committees”).
1
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in
(continued . . . )
-2-
2 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
4. Following the formation of the Committees, the BSA and the Committees
engaged in good-faith, arm’s-length negotiations regarding the relief sought in the Preliminary
Injunction Motion. As a result of these negotiations, the BSA and the Committees, upon
consultation with other interested parties, reached an agreement on the terms of a consent order.
5. On March 30, 2020, the Bankruptcy Court entered the Consent Order Pursuant to
11 U.S.C. §§ 105(a) and 362 Granting the BSA’s Motion for a Preliminary Injunction, Adv. Pro.
No. 20-50527 (LSS) [Adv. Dkt. No. 54] (the “Consent Order”). Under the Consent Order, the
Pending Abuse Actions and additional actions filed after the Petition Date (the “Further Abuse
Actions”), as such Pending Abuse Actions and Further Abuse Actions are identified on Schedule
1 to the Consent Order, were stayed up to and including 11:59 p.m. (prevailing Eastern Time) on
May 18, 2020 (the “Termination Date”), with respect to those certain non-debtor entities
identified on Schedule 2 to the Consent Order.
6. On May 18, 2020, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered the Stipulation and Agreed Order By and Among the
Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official Committee
of Unsecured Creditors Extending the Termination Date of the Standstill Period Under the
Consent Order Granting the BSA’s Motion for a Preliminary Injunction, Adv. Pro. No. 20-50527
(LSS) [Adv. Dkt. No. 72], extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on June 8, 2020 as to the Pending Abuse Actions and the Further
Abuse Actions.
( . . . continued)
the Order Approving Sixth Stipulation.
-3-
3 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
7. On June 9, 2020, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered the Second Stipulation and Agreed Order By and
Among the Boy Scouts of America, the Official Committee of Survivors of Abuse and the Official
Committee of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for
a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 77], further extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on November 16, 2020 as to the Pending Abuse Actions and the
Further Abuse Actions.
8. On November 18, 2020, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered the Order Approving Third Stipulation By and
Among the Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official
Committee of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for
a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 116], further extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on March 19, 2021 as to the Pending Abuse Actions and Further
Abuse Actions.
9. On March 17, 2021, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered Order Approving Fourth Stipulation By and Among
the Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official
Committee of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for
a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
-4-
4 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 162], further extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on July 19, 2021 as to the Pending Abuse Actions and Further Abuse
Actions.
10. On June 24, 2021, following further negotiations among the BSA and the
Committees, the BSA and the Committees entered into the Fifth Stipulation by and Among the
Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official Committee
of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for a
Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 178-1] (the “Fifth Stipulation”), which provided for, upon approval by the
Bankruptcy Court, an extension of the Termination Date up to and including the earlier of: (a)
October 28, 2021; and (b) the date of the first omnibus hearing after the Bankruptcy Court issues
its decision confirming or denying confirmation of the Plan, except that, notwithstanding the
foregoing, if on or before the extended Termination Date the TCC was a party to a filing with the
Bankruptcy Court that evidences its support for the Plan, the extended Termination Date would
be the date of the first omnibus hearing after the Bankruptcy Court issues its decision confirming
or denying confirmation of the Plan.
11. On July 1, 2021 the Debtors filed the Debtors’ Motion For Entry of an Order,
Pursuant to Sections 363(b) and 105(a) of The Bankruptcy Code, (I) Authorizing the Debtors to
Enter Into and Perform Under the Restructuring Support Agreement, and (II) Granting Related
Relief (the “RSA Approval Motion”). The RSA Approval Motion seeks approval of the Debtors’
entry into a Restructuring Support Agreement to which the TCC is a party; accordingly, the
-5-
5 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
filing of the RSA Approval Motion triggered the above-referenced provision in the Fifth
Stipulation providing for an Extended Termination Date up to and including the date of the first
omnibus hearing after the Bankruptcy Court issues its decision confirming or denying
confirmation of the Plan.
12. On July 21, 2021, the Bankruptcy Court entered the Order Approving Fifth
Stipulation, further extending the Termination Date up to and including the date of the first
omnibus hearing after the Bankruptcy Court issues its decision confirming or denying
confirmation of the Plan.
13. On August 27, 2021, the Restructuring Support Agreement expired by its terms.
Accordingly, because the TCC was no longer party to a filing evidencing its support for the Plan,
the extended Termination Date reverted to October 28, 2021.
14. On October 3, 2021, following further negotiations among the BSA and the
Committees, the BSA and the Committees entered into the Sixth Stipulation by and Among Boy
Scouts of America, the Official Committee of Survivors of Abuse, and the Official Committee of
Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for a Preliminary
Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the Termination
Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.) [Adv. Dkt.
No. 193] (the “Sixth Stipulation”), which provides for, upon approval by the Bankruptcy Court,
an extension of the Termination Date up to and including the date of the first omnibus hearing
after the Bankruptcy Court issues its decision confirming or denying confirmation of the Plan
(the “Extended Termination Date”).
-6-
6 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
15. Since the entry of the Consent Order, and consistent with its terms, Schedules 1
and 2 thereto have been amended several times, including most recently with the filing of the
Sixth Stipulation [Adv. Dkt. No. 193-1].
NOTICE OF ENTRY OF THE ORDER APPROVING SIXTH STIPULATION
16. The BSA hereby provides notice that, on November 8, 2021, the Bankruptcy
Court entered the Order Approving Sixth Stipulation.
17. The Order Approving Sixth Stipulation extends the stay as to each of the Pending
Abuse Actions and Further Abuse Actions, including this action, identified in Schedule 1 as
attached to the Sixth Stipulation (or as has been or may be further amended), up to and including
the date of the first omnibus hearing after the Bankruptcy Court issues its decision confirming or
denying confirmation of the Plan. Order Approving Sixth Stipulation ¶ 1.
18. The period beginning on the Petition Date and ending on the Extended
Termination Date shall not be included in computing the running of any time periods with
respect to any deadline in any Pending Abuse Action or Further Abuse Action, and all claims,
defenses, rights and privileges with respect thereto shall be preserved and remain viable to the
same extent as they existed as of the Petition Date. Sixth Stipulation ¶ 12.
19. The entry of the Order Approving Sixth Stipulation is without prejudice to the
BSA’s right to seek further extensions of the Termination Date and any party’s right to object
thereto.
APPLICABILITY OF THE SIXTH STIPULATION TO THIS ACTION
20. The BSA hereby provides further notice that upon entry of the Order Approving
Sixth Stipulation, this action has been and continues to be stayed as against Defendants
Leatherstocking Council, Boy Scouts of America and New Hartford Post No. 1376 Incorporated
-7-
7 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
the American Legion, Department of New York. This action is identified as a Pending Abuse
Action or Further Abuse Action on Schedule 1 as attached to the Sixth Stipulation (or as has
been or may be further amended), and Defendants Leatherstocking Council, Boy Scouts of
America and New Hartford Post No. 1376 Incorporated the American Legion, Department of
New York are identified on Schedule 2 as attached to the Sixth Stipulation (or as has been or
may be further amended).
21. Accordingly, the BSA hereby provides further notice that the prosecution of any
and all claims against the Defendants Leatherstocking Council, Boy Scouts of America and New
Hartford Post No. 1376 Incorporated the American Legion, Department of New York in this
action are stayed up to and including the date of the first omnibus hearing after the Bankruptcy
Court issues its decision confirming or denying confirmation of the Plan. 2
Respectfully submitted this 14th day of December, 2021.
MELICK & PORTER, LLP
By: ___/s/ Mathew Beckwith_____
Mathew W. Beckwith
Attorney for Defendants
800 Third Avenue, 28th Floor
New York, NY 10022
Tel: (212) 541-7236
Fax: (212) 840-8560
2
The claims and causes of action against the BSA itself are, and will continue to be, automatically stayed
pursuant to 11 U.S.C. § 362 as a result of its bankruptcy filing.
-8-
8 of 9
FILED: ONEIDA COUNTY CLERK 12/14/2021 03:37 PM INDEX NO. EFCA2021-001625
NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 12/14/2021
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing NOTICE OF ENTRY was
served on December 14, 2021, by means of filing in the New York Supreme Court
Management/Electronic Case Filing (NYSCEF) system, upon all counsel of record.
I hereby certify under penalties of perjury that the foregoing is true and correct.
Dated: December 14, 2021
/s/ Mathew W. Beckwith
Mathew W. Beckwith
-9-
9 of 9