USA Gymnastics files for Chapter 11 bankruptcy after Nassar scandal
INDIANAPOLIS, Ind. – USA Gymnastics has filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code following the sexual abuse scandal of Dr. Larry Nassar.
Recently elected chair of the USA Gymnastics Board of Directors Kathryn Carson released a statement Wednesday afternoon.
“We owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past and, through this process, seek to expedite resolution and help them move forward,” said Carson. “Our sport is safer and stronger thanks to the bravery of these women.
USA Gymnastics says the Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust.
By staying all pending actions against USA Gymnastics, the Chapter 11 filing also allows USA Gymnastics to work with the United States Olympic Committee to determine the best path forward for the sport of gymnastics. “We look forward to future conversations with the USOC to demonstrate our commitment at all levels to strengthening the organization and making gymnastics the best it can be for athletes at all levels,” said Carson.
This comes after The United States Olympic Committee says its taking steps to remove USA Gymnastics as the governing body of the sport.
“USA Gymnastics will continue with its day-to-day operations of directing and managing the sport’s business and implementing initiatives that put the safety and well-being of the athletes at the forefront.”
For their entire statement, click here.