USA Gymnastics, Short on Funds to Pay Sex-Abuse Claims, Files for Bankruptcy

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USA Gymnastics, under threat of being decertified by the U.S. Olympic Committee, filed for bankruptcy after running short of funds to pay victims of Larry Nassar’s sexual abuse.
According to the tribunal, the organization raised the $ 11 million status in the Southern District of Indiana to $ 100 million on Wednesday’s estimated total assets and debts of $ 50 million. According to an expression, USAG aims to continue its activities while taking over the victims of claims that the organization previously covered the insurance purchased by the organization.
However, in the court files, USAG said it would not be enough to go around. He said the potential impact of these cases was $ 75 million and $ 150 million, while the institution had only $ 6.5 million of cash and investments and insufficient insurance policy.

President Kathryn Carson said in a statement, olmak We owe the survivors’ allegations based on the terrible actions of the past, fully and finally, based on the horrific actions of the past and the survivors to help speed up the solution and progress, Başkan said President Kathryn Carson.

Bankruptcy lasts a turbulent year for the US Gymnasium, which has established a new leadership after the trial of former team doctor Larry Nassar. Nassar was sentenced to 60 years in prison on child pornography charges and sentenced to 40 to 125 years in prison for decades of sexual harassment. His victims count more than 150 existing and former gymnasts, including several Olympic champions.

Raisman’s Claim
According to the statement, the amount of insurance revenues is not affected by the filing of Section 11, but added that ın US Gymnastics has no other important assets that can be used to pay off their claims. Açık Bankrupt filing showed that the organization was 1,000. 5,000 to the creditor.

One of the unpaid creditors is the Olympic gold and silver medalist Aly Raisman, who talked about the abuse of Nassar. The filing did not specify an amount and a representative for Raisman did not immediately respond to a comment request.

One of the biggest unsecured cases is a $ 340,000 dispute for Stephen Penny, the former head of the US Gymnastics accused in connection with the scandal.
The results, according to Ted Gavin, a business consultant at Gavin / Solmonese and president of the American Bankruptcy Institute, may follow the pattern in the bankruptcy of the film company Weinstein Co. following Harvey Weinstein’s allegations of sexual harassment.

No shelter
Gavin, who had suspended all allegations, would not have been able to stop the prosecution of individuals against violations or to cover them up. ”All bets are here,“ he said.

The United States Olympic Committee spokesman, Patrick Sandusky, said in an e-mailed statement that the organization “reviewed the effects of a bankruptcy application on the prosecution waiting to cancel the recognition of the US Gymnasium”.

USA Gymnastics says filing should help the USOC to move forward, while the national governing body is not sure that it will solve the problems that promote the antichrist process. Speaking at an event in New York on Wednesday, Chief Executive Officer Sarah Hirshland said the case would continue as planned.

. It doesn’t change our perspective or our commitment to this process, Hir said Hirshland. He said bankruptcy is less about financial matters and about trying to resolve all pending cases.
In the case of USA Gymnastics, 18-09108-RLM-11, South of Indiana Region.

Editor’s Note: In the US Gymnastic cases, insurance companies identified in previous applications include:

ACE AMERICAN INSURANCE COMPANY f / k / a CIGNA INSURANCE COMPANY, LARGE AMERICAN SECURITY COMPANY, LIBERTY INSURANCE SOFTWARERS CO., NATIONAL COMMISSION COMPANY, RSUI INDEMNITY COMPANY, TIG INSURANCE COMPANY, VIRGINIA SURETY COMPANY, INC., AND f / k / a COMBINED SPECIAL INSURANCE COMPANY.

He also created a page with questions and answers on what the US Gymnastics Bankruptcy filing and what it means. This question / answer on the page:

How does filing in Section 11 specifically affect survivors’ claims?
The claims of the survivors against the US Gymnasium are covered by the insurance previously purchased by the US Gym, and the amount of current insurance revenues (currently determined) is not affected by Section 11 filing. We believe that the Bankruptcy Court is the best forum in which it will implement appropriate procedures to resolve claims rightly and allocate insurance revenues to the right holders and resolve them more quickly than cases brought before courts in Turkey.

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