Buried in the fine print of a document presented as part of the The bankruptcy of Boy Scouts of America last week is a brief mention of a potentially huge asset: “Rockwell’s original paintings.”

The revelation that the organization owns works by Norman Rockwell, the American painter and illustrator, is no surprise since the artist and the Scouts have been linked for more than a century. But the recognition of those valuable assets, potentially worth millions to creditors, could trigger a legal fight for their future.

Since the Boy Scouts estimate that they will face about 1,700 lawsuits for alleged sexual abuse dating back decades, the nonprofit is under pressure to sell their property to pay the victims. By declaring bankruptcy, the organization has tried to provide a way to carry out that process in an orderly manner.

The Boys Scouts of America declined to comment for this story.

Was it dishonorable to declare bankruptcy?Did the Boy Scouts violate their own code by presenting Chapter 11?

While the group is They are expected to argue that real estate owned by local Scout councils is not part of bankruptcy, and therefore did not include local property in their initial court filings, mentioning the work of art that seems to be admitting that their collection could Be at risk of liquidation. to satisfy the creditors.

The decision could be tense for the Boy Scouts. The well-defined image of the group arose in part from the hand of Rockwell, who created works of art by explorers saluting, serving and venturing to the covers of “Boys’ Life”, the organization’s magazine, for more than half a century..

The Scouts joined bankrupt institutions of the past, such as Polaroid and the city of Detroit, which faced pressure to sell precious works of art to pay off debts.

The federal bankruptcy judge appointed to oversee the Scout case may be forced to decide whether the proceeds should be sold if the debtor and creditors cannot reach an agreement.

“The tension between the law and these emotional connections that sustain and support the institution in many ways is a very real problem for the court,” said Houlihan Lokey CEO Steve Spencer, a restructuring consultant who has advised the Companies on the subject. Potential sale of art in multiple bankruptcies.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.