Madison Square Boys & Girls Club reaches settlement with Rockefeller University

By Sarah Lizee

Olympia, Wash., July 18 – Madison Square Boys & Girls Club, Inc. and its official committee of unsecured creditors are seeking approval of a settlement with Rockefeller University that could result in an uncontested plan confirmation hearing, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The parties said the settlement agreement is the successful culmination of their extensive efforts to build consensus and pave the way for the debtor to pursue confirmation of the plan without objection, allowing for the implementation of an equitable resolution of pending claims against the debtor, including abuse claims asserted after the passage of the Child Victims Act on Feb. 14, 2019.

The main terms of the settlement agreement are as follows:

• Rockefeller will fund $150,000 in cash directly to a compensation trust promptly on or after the effective date for the benefit of holders of abuse claims;

• On the effective date of the settlement agreement, the debtor will release, extinguish, waive and forever discharge all claims and causes of action owned, held or capable of being asserted by or on behalf of the debtor or its estate against Rockefeller;

• Rockefeller agrees that it will forgo and not receive any such distribution from the compensation trust, except for any rights of Rockefeller concerning any non-settling insurance company or any non-settling insurance company’s abuse insurance policy.

The combined hearing on confirmation of the Chapter 11 plan of reorganization and final approval of the related disclosure statement is scheduled for July 28.

The New York-based non-profit after-school program provider filed Chapter 11 bankruptcy on June 29, 2022 under case number 22-10910.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.