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USA Gymnastics’ hearing cancelled; exclusive filing period extended
By Sarah Lizee
Olympia, Wash., March 23 – The hearing for USA Gymnastics’ disclosure statement and plan confirmation procedures, previously set for March 31, has been cancelled due to the Covid-19 pandemic and closing of the Birch Bayh Federal Courthouse to the public, according to an order filed Monday in the U.S. Bankruptcy Court for the Southern District of Indiana.
“It would not do justice to the motion before the court to attempt a hearing telephonically,” the filing said.
The court said it is unknown when in-person testimony and argument will be safely heard in the courthouse.
The company was seeking an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan. USA Gymnastics asked the court to extend its exclusive filing period by 60 days through April 3 and the solicitation period through May 29.
The court ordered Monday that the filing period will be extended through June 2, and the solicitation period through July 28.
According to the motion, USA Gymnastics has in excess of 500 creditors, the majority of them survivors of sexual abuse.
Mediation began in July 2019 with a survivors committee, USA Gymnastics’ insurers and other parties in interest to negotiate a consensual plan of reorganization, the motion said. That mediation is still ongoing.
The organization said it is not sure if insurance coverage adversary proceedings or mediation will be concluded before the current exclusive filing-period expiration date.
As a result, a plan will not be proposed before the current filing period expires.
The Indianapolis-based gymnastics organization filed bankruptcy on Dec. 5, 2018 under Chapter 11 case number 18-09108.
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