DOVER, Del. (AP) — A bankruptcy judge has approved a proposal by the Boy Scouts of America to set up an $850 million fund to compensate tens of thousands of men who say they were sexually abused as youngsters by scout leaders.
But the judge on Thursday also rejected two key provisions of the deal, potentially jeopardizing the agreement that the organization had been hoping to use as a springboard to emerge from bankruptcy later this year.
The judge did not grant a request that the Boy Scouts pay legal fees and other expenses for the attorneys of the abuse claimants, according to NPR.
The judge also denied the Boy Scout's request to withdraw from an agreement with an insurance company that would have paid millions into the fund, NPR reports.
It was not immediately clear how Thursday’s ruling will affect the future of the bankruptcy case for the Texas-based organization.
The Associated Press reports the Boys Scouts are facing approximately 82,500 sexual abuse claims in the bankruptcy case