USA Gymnastics disclosure statement draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Sept. 30 – USA Gymnastics’ disclosure statement for its amended Chapter 11 plan of reorganization drew an objection Wednesday from Region 10 U.S. trustee Nancy J. Gargula, according to a filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

Gargula said the statement doesn’t provide enough information for creditors to make an informed decision for voting on the plan.

The U.S. trustee said that survivor claimants need to know the insurance policies’ liability limits, and the individual amounts of the insurers’ settlement offers, to fairly evaluate the plan.

In addition, no detail is provided about the relationship between the debtor and some of the entities to be protected by a channeling injunction, Gargula said.

A hearing on approval of the amended disclosure statement is scheduled for Oct. 4.

The Indianapolis-based gymnastics organization filed bankruptcy on Dec. 5, 2018 under Chapter 11 case number 18-09108.

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