USA Gymnastics gets exclusivity extension; mediation ongoing

By Caroline Salls

Pittsburgh, Nov. 26 – USA Gymnastics received a fourth extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Indiana.

USA Gymnastics’ exclusive filing period was extended by 60 days through Feb. 3 and the solicitation period through March 31.

According to the motion, USA Gymnastics has in excess of 500 creditors, the majority of them survivors of sexual abuse.

Mediation began in July with a survivors committee, USA Gymnastics’ insurers and other parties in interest to negotiate a consensual plan of reorganization, the motion said. That mediation was still ongoing when the motion was filed earlier this month.

The organization said it does not expect insurance coverage adversary proceedings or mediation to be concluded before the current exclusive filing-period expiration date of Dec. 3.

As a result, a plan will not be proposed before the previous filing period expired.

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

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