INDIANAPOLIS – USA Gymnastics announced Wednesday is has filed for Chapter 11 bankruptcy to provide a faster resolution of claims for the victims of sexual abuse by former team doctor Larry Nassar.
The filing will allow USA Gymnastics to continue to support athletes and meet its responsibilities to members while also resolving the claims made by survivors of Nassar's abuse.
The survivors' claims are covered by insurance previously purchased by USA Gymnastics, and the amount of available insurance will not be affected by the filing, officials said.
Officials with USA Gymnastics said the bankruptcy court is the best place to "implement appropriate procedures to equitably determine and allocate the insurance proceeds among claimants, allowing compensation to survivors to proceed more quickly than litigation filed in multiple courts around the country."
Below is a statement from Kathryn Carson, who was recently elected chair of the USA Gymnastics Board of Directors.
"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. Our sport is safer and stronger thanks to the bravery of these women. The Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust.
"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. Since joining the Board last June, I have been inspired by the commitment of our members -- the administrators, judges, coaches and club owners -- who work daily to foster a safe, positive and encouraging environment where thousands of young people can learn gymnastics and life skills, compete and pursue their dreams.
"We are moving forward with our plans to strengthen our organization to further support the work of our members and gymnasts. We have made significant progress in implementing safety initiatives and are in the process of searching for a new CEO who has the experience to build a leadership team that will restore confidence in USA Gymnastics, and set and execute a clear vision for a successful future.
"All of us have the same goal of making meaningful changes for the benefit of our athletes and all members. While considerable change has been made, substantial work still remains. We will continue to prioritize athletes’ safety and well-being and acting in the best interests of the greater gymnastics community."
The filing allows USA Gymnastics to work with the U.S. Olympic Committee to determine the best steps forward for the sport.
"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," Carson said. "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."
Carson is one of eight membership directors who were elected to a newly created board of directors in June.