NY Youth Club gets agreement to mediate abuse claims in Ch. 11

By Rick Archer (July 13, 2022, 12:41 p.m. EDT) — A New York bankruptcy judge on Wednesday approved the Madison Square Boys & Girls Club’s request to appoint a mediator to try to settle dozens of sexual abuse complaints, but delayed entry into the in order to give unsecured creditors an opportunity to intervene.

In a virtual bench decision, US Bankruptcy Judge Sean H. Lane said he agreed with the New York club that mediation is necessary and should begin as soon as possible, but that it would not enter the order until the U.S. trustee’s office could organize a committee of unsecured creditors to consider the proposal.

The 138-year-old Madison Square Boys…

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