Madison Square Boys & Girls gets conditional disclosure approval

By Sarah Lizee

Olympia, Wash., April 28 – Madison Square Boys & Girls Club, Inc. received conditional approval of the disclosure statement for its Chapter 11 plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for June 26.

Following mediation that started in July 2022, the debtor and official committee of unsecured creditors reached an agreement regarding the terms of a settlement to resolve the debtor’s abuse-related liabilities, which will be implemented under the plan.

Abuse claims asserted against the debtor and other covered parties will be channeled to a trust funded with assets to be distributed to holders of allowed abuse claims.

Other secured claims and other priority claims are unimpaired under the plan.

Holders of general unsecured claims will receive their pro rata share of a $300,000 cash pool.

The not-for-profit membership interests will be reinstated.

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

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