New Chapter 11 Filing – Madison Square Boys & Girls Club, Inc.
On June 29, 2022, New York City-based Madison Square Boys & Girls Club, Inc. (the “Club”), a non-profit aimed to save and enhance the lives of underserved boys and girls through after school programming and youth development services, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case No. 22-10910). The Club reports $50 million to $100 million in assets and $100 million to $500 million in liabilities. According to a press release from the Club, they have entered bankruptcy to facilitate the efficient and equitable resolution of legacy claims filed under the New York State Child Victims Act (the “CVA”). Since the passage of the CVA in 2019, the club has been named a defendant in 149 lawsuits, and and the vast majority of claims relate to the conduct of a volunteer doctor [who was last associated with the Club] in the 1980s. The Club states it entered bankruptcy to reach a comprehensive global solution for these claims while it continues to provide essential services, resources, and support for its thousands of current and future members.
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