USA Gymnastics files for bankruptcy

As the fallout from the Larry Nassar scandal continues to plague USA Gymanastics, the organisation filed for bankruptcy protection Wednesday.

“This is not a liquidation,” said Kathryn Carson, the chair of USA Gymnastics’ board of directors. “This is a reorganisation…we owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past.”

Speaking to ESPN, John Manly, an attorney who represents multiple clients USA Gymnastics, called the filing an “inevitable result of the inability of this organisation to meet its core responsibility of protecting its athlete members from abuse”.

“The leadership of USA Gymnastics has proven itself to be both morally and financially bankrupt,” Manly said. “They have inflicted and continue to inflict unimaginable pain on survivors and their families. They are incapable of meeting their obligations as an Olympic governing body.”

USA Gymnastics has gone through several leadership changes in the past 18 months. Last month the US Olympic Committee took the first steps towards revoking USA Gymnastics certification.