USA Gymnastics seeks four-month extension of exclusive plan periods

By Caroline Salls

Pittsburgh, March 6 – USA Gymnastics is seeking an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Indiana.

USA Gymnastics is asking the court to extend its exclusive filing period by four months through Aug. 5 and the solicitation period through Oct. 3, 2019.

According to the motion, USA Gymnastics has in excess of 500 creditors, the majority of them survivors of sexual abuse. Following the expiration of the claims-filing deadline, the debtor said it intends to move toward a resolution of the survivors’ claims.

“The debtor cannot completely assess survivors’ claims until the bar date passes, claims are reviewed and the full universe of survivors’ claims is known, all of which will occur after the expiration of the [current] exclusive filing period,” the motion said.

In addition, USA Gymnastics said the resolution of an insurance coverage adversary proceeding and the expiration of the claims-filing deadline will help determine the extent of insurance proceeds available for distribution to survivors.

“Until the bar date passes, the debtor cannot meaningfully negotiate...about the terms of a plan,” the motion said.

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

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