{"id":18181,"date":"2018-12-05T21:50:26","date_gmt":"2018-12-05T21:50:26","guid":{"rendered":"https:\/\/associatednews.us\/content\/2018\/12\/05\/usa-gymnastics-files-for-chapter-11-bankruptcy\/"},"modified":"2018-12-05T21:50:26","modified_gmt":"2018-12-05T21:50:26","slug":"usa-gymnastics-files-for-chapter-11-bankruptcy","status":"publish","type":"post","link":"https:\/\/associatednews.us\/content\/usa-gymnastics-files-for-chapter-11-bankruptcy\/","title":{"rendered":"USA Gymnastics Files For Chapter 11 Bankruptcy"},"content":{"rendered":"

By Laurel Wamsley<\/a><\/span> <\/p>\n

<\/p>\n
\n <\/a><\/div>\n
\n
\n
\n Enlarge this image<\/a>\n <\/div>\n<\/div>\n
\n
\n
\n

\n USA Gymnastics says filing for bankruptcy gives it “the opportunity to reorganize.”<\/p>\n

<\/p>\n

PhotoAlto\/Odilon Dimier\/Getty Images<\/p>\n

<\/b>
\n hide caption<\/b><\/b>\n <\/p>\n<\/p><\/div>\n

toggle caption<\/b><\/b>\n <\/div>\n

<\/p>\n

PhotoAlto\/Odilon Dimier\/Getty Images<\/p>\n

<\/span>\n<\/div>\n<\/p><\/div>\n

USA Gymnastics, the sport’s national governing body, said today that it had voluntarily filed for Chapter 11 bankruptcy.<\/p>\n

Board of Directors Chair Kathryn Carson, who joined the newly restructured board in June, said in a statement<\/a> that bankruptcy will allow USA Gymnastics to “expedite resolution of claims” against it from survivors of sexual abuse by former team doctor Larry Nassar. She said the organization will continue to operate normally and that it is not having trouble paying its bills.<\/p>\n

But while USA Gymnastics says bankruptcy gives it “the opportunity to reorganize,” it’s not clear how the filing is helpful to the victims and other athletes.<\/p>\n

In an online post<\/a> about the bankruptcy filing, USA Gymnastics said that survivors’ claims against the organization are covered by insurance that was previously purchased and that the amount of that insurance is unaffected by the filing. “We believe that the Bankruptcy Court is the best forum in which to implement appropriate procedures to equitably resolve claims and allocate the insurance proceeds among claimants, allowing resolution more quickly than litigation filed in courts around the country,” it said.<\/p>\n