USA Gymnastics filed for Chapter 11 bankruptcy protection in an Indiana Federal Court today, a step it claims will temporarily halt the USOC’s efforts to decertify it as national governing body. The USOC initially issued a statement saying it intends to proceed with decertification, but backed off less than an hour later. It now is non-committal about its next steps. "Financial stability and viability are essential for a national governing body to operate in the best interests of the athletes,” USOC Chief External Affairs Officer Patrick Sandusky said. "We are reviewing the effects of the bankruptcy filing on the pending proceeding to revoke USA Gymnastics’ recognition as the national governing body for Olympic gymnastics in the United States."
What is not in dispute: The bankruptcy filing will suspend all civil lawsuits for the time being. USAG is facing at least 100 lawsuits relating to its handling of former team doctor Larry Nassar. USAG says it sought bankruptcy to expedite the payment of legal settlements to the victims. USAG BOD Chair Kathryn Carson said mediation with victims’ lawyers was not making progress. "The Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust,” Carson said. “At the same time, the filing will allow us to continue the important work of supporting our outstanding gymnasts at all levels, including the current and next generation of Olympic hopefuls."
