The ad hoc Coalition of Abused Scouts for Justice’s request for a $21 million fee in the Boy Scouts of America’s Chapter 11 case was declined by a Delaware bankruptcy judge. The judge’s decision, as reported by Law360’s Ben Zigterman, specifically highlighted that while the coalition played a considerable part in the organisation’s restructuring process, it fell short of the prerequisites established by the bankruptcy code.
According to Zigterman’s report, this represents a significant outcome as part of the Boy Scouts of America’s ongoing bankruptcy proceedings. In denying the $21 million fees, the court effectively clarified the legal standards for professional compensation in relation to bankruptcy cases. It reinforces the statutory requirement that to seek compensation for bankruptcy-related professional services, there must be compliance with the exact conditions of the bankruptcy code.