Indianapolis-based USA Gymnastics has filed for bankruptcy protection in an attempt to survive. The group faces numerous sex abuse lawsuits from hundreds of accusers across the country.
Speaking on a conference call Wednesday, recently appointed USA Gymnastics chairwoman Kathryn Carson says the provisions of Chapter 11 should help resolve claims more quickly than the settlement attempts made previously.
â€œWe had been trying to mediate a settlement outside of bankruptcy and it wasnâ€™t proceeding, and for a lot of different reasons, we believe itâ€™ll work under this scenario,â€ says Carson. â€œSo thatâ€™s why weâ€™re doing this.â€
She says now, the 100 cases filed by 350 plaintiffs against the organization will all have to go to court.
â€œWe think itâ€™s a really strong vehicle to bring the plaintiffs and the insurers together candidly to reach a settlement,â€ says Carson.
Last month, the United States Olympic Committee said it was considering removing USA Gymnastics from its role as the sportâ€™s national governing body.
Carson says she hopes filing for bankruptcy protection can postpone any final action.
â€œThe USOC seems to be commenting that they think theyâ€™re gonna stay where they are,â€ she says.
USA Gymnastics is covered through previously purchased insurance that will pay out claims for which the organization is found liable.