Settlement with survivors approved by court; USA Gymnastics to come out of bankruptcy
INDIANAPOLIS, December 13, 2021 – The U.S. Bankruptcy Court for the Southern District of Indiana on Monday upheld a joint reorganization plan backed by USA Gymnastics and the Survivors Committee that will provide a settlement with survivors of sexual abuse and allow the organization to emerge from bankruptcy by the end of the year.
Judge Robyn Moberly confirmed a plan that includes significant non-monetary commitments from USA Gymnastics focused on the safety and well-being of athletes and a financial settlement of $ 380 million.
Key provisions of the plan include USAG commitments to further strengthen safe sport policies, complaint resolution and member club participation; and have at least one survivor on the USAG Board of Directors, Safe Sport Committee, and Athlete Health and Welfare Council. It also provides for a restorative justice process to facilitate historical accountability, reconciliation and continued cultural transformation in the gymnastics community.
âUSA Gymnastics is deeply sorry for the trauma and pain survivors endured as a result of the actions and inaction of this organization,â said USAG President and CEO Li Li Leung. âThe reorganization plan that we jointly tabled reflects our own responsibility to the past and our commitment to the future.
âIndividually and collectively, the Survivors bravely stepped forward to advocate for lasting change in the sport. We are committed to working with them, and with the entire gymnastics community, to ensure that we continue to prioritize the safety, health and well-being of our athletes and the community through- above all. “
USA Gymnastics filed a voluntary Chapter 11 Bankruptcy Code reorganization petition with the U.S. Southern District of Indiana Bankruptcy Court on December 5, 2018. The filing was undertaken to pave the way for a settlement with the survivors . Survivors and other creditors voted overwhelmingly to approve the plan on November 29, with the court formally confirming an updated plan at Monday’s hearing.
Elected on the eve of bankruptcy, Kathryn Carson, chairman of the board and independent director, led the organization through CEO succession, pandemic and bankruptcy. âToday it’s all about the Survivors,â Carson said. âThey have used their voices to drive significant change and restructuring within USA Gymnastics, and their impact extends far beyond our sport. We are grateful and touched by their courage and determination to make all sports safer around the world. “
With the plan now approved by the court, a survivor trust will be funded by insurers, USOPC and USA Gymnastics. Compensation will be distributed to Survivors in accordance with the award schedule developed and approved by the Survivors Committee. The USAG will formally come out of bankruptcy in the coming weeks, after the necessary administrative work and the entry of a court order closing the case. As part of the plan’s confirmation, the USOPC resolved its Section 8 complaint against USA Gymnastics, which will pursue USOPC’s recognition of USA Gymnastics as the national governing body for the sport.
The complete dossier is available at https://omniagentsolutions.com/usagymnastics.
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