USA Rugby Exits Chapter 11 Bankruptcy
The Delaware Bankruptcy Court today approved USA Rugby’s debtor plan and the sport’s National Governing Body will now proceed to its post-bankruptcy phase.
“This is an important step for USA Rugby and the go-forward plans of the game here in the United States,” said USA Rugby CEO Ross Young. “We are extremely pleased with the outcome, most notably as it becomes the catalyst for us to begin the hands-on rebuilding process with the rugby community and recommence long term planning that will benefit all levels of the game.”
No objections were raised at today’s hearing, and despite a little hiccup a week ago, USA Rugby’s creditors have approved the organization’s plan to address creditor claims and reconcile bankruptcy debts over time. (National Collegiate Rugby lodged an objection to the plan a week ago, but later withdrew it.) USA Rugby is now officially a reorganized organization (effective September 1) and will start paying back creditors over the next five years.
Moving forward, USA Rugby will remain accountable for a five-year reimbursement plan with secured creditors. When completed, the organization will be fully discharged from any claims.
USA Rugby now has a new membership registration program being put in place and agreements with the three main community constituencies. Once the organization can start collecting at least some dues, it can reenergize another income stream, and maybe bring sponsorship income back. World Rugby will once again free up grant money and the USOPC will be back in play.