USA Gymnastics President and CEO Kerry Perry, middle, watches the U.S. Gymnastics Championships, Thursday, Aug. 16, 2018, in Boston. (AP Photo/Elise Amendola)

Abuse settlements force USA Gymnastics to file for bankruptcy

The organization filed a Chapter 11 bankruptcy petition on Wednesday as it attempts to reach settlements in the dozens of sex-abuse lawsuits it faces.

USA Gymnastics is turning to bankruptcy in an effort to ensure its survival.

The embattled organization filed a Chapter 11 bankruptcy petition on Wednesday as it attempts to reach settlements in the dozens of sex-abuse lawsuits it faces and to forestall its potential demise at the hands of the U.S. Olympic Committee.

USA Gymnastics filed the petition in Indianapolis, where it is based. It faces 100 lawsuits representing 350 athletes in various courts across the country who blame the group for failing to supervise Larry Nassar, a team doctor accused of molesting them.

Kathryn Carson, who was recently elected chairwoman of the board of directors, said the organization is turning to bankruptcy to speed things up after mediation attempts failed to gain traction.

“Those discussions were not moving at any pace,” Carson said. “We as a board felt this was a critical imperative and decided to take this action.”

The filing does not affect the amount of money available to victims, which would come from previously purchased insurance coverage, she said. Carson said the insurance companies “are aware we’re taking this action and our expectation is they will come to the table and pay on our coverage.”

Carson added: “This is not a liquidation. This is a reorganization.”

Read more: USOC moves to shut down USA Gymnastics after Nassar scandal

Read more: U.S. gymnastics doctor sentenced to 40 to 175 years in prison

One that USA Gymnastics hopes will buy it enough time to fend off the USOC’s intent to decertify it.

The USOC on Nov. 5 took steps to remove USAG as the sport’s governing body at the Olympic level — a step that’s taken only under the most extreme circumstances. In an open letter to the gymnastics community, USOC CEO Sarah Hirshland said “you deserve better,” and that the challenges facing USA Gymnastics were more than it was capable of overcoming as currently constructed.

Carson said the legal manoeuvring Wednesday delays the USOC’s efforts to strip its designation as a national governing body.

“We always have a dialogue going with them and intend to make it clear with them we have a lot to talk about and we want to keep that going,” Carson said.

USOC spokesman Patrick Sandusky disagreed.

“While we fully understand that USAG believes this restructuring will begin to solve deficiencies we’ve identified, the filing does not impact our Section 8 complaint and that process will move forward,” Sandusky said.

Will Graves, The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

Revelstoke Grizzlies celebrate the end of their regular season with awards

Their last game is on Saturday and the playoffs start next week

MP Stetski calls for more funding for rural internet

Stetski says there is a growing digital divide between rural and urban communities

Revelstoke Search and Rescue calls Feb. 11-17

Revelstoke Search and Rescue reports their activities to Emergency Management BC who… Continue reading

Penticton woman captures footage of bobcat feasting on bird in backyard

‘Kim Ken Oszinski’ posted photos and videos of the bobcat from just a few feet away

Roads, weather and ski conditions for Revelstoke area today

Pockets of wind slab, loose dry avalanches are the main concern, especially in steep exposed terrain

Branching out: learning to ski at Revelstoke Mountain Resort

It’s the first time at the hill for the editor of Revelstoke Review

5 Events to check out at local ski hills

Check out this new column from Okanagan events guru Christina Ferreira

Former Okanagan fire chief sues City of Vernon after termination

Keith Green’s civil claim says that he believes he was wrongfully terminated

Okanagan man cashes in $500,000 Daily Grand lotto ticket

Penticton resident Harald Naegel won using his regular five numbers

Alberta’s oil-by-rail plan a worry for Shuswap mayor

High volume of train traffic already an environmental/public safety concern

Interior Health sees uptick in calls about measles after outbreak in Vancouver

IH has received an extra few hundred calls about measle immunization and status

‘His kids were No. 1’: Wife remembers man shot dead in Kamloops

Wife of Kamloops shooting victim describes him as loving, hardworking family man

Okanagan biathlete bronzed at Winter Games

Ethan Algra helps Team BC earn medal in Red Deer

New report calls for regulated heroin sales to curb B.C.’s overdose problem

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

Most Read