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The board of USA Rugby has voted to file for chapter 11 bankruptcy as a result of \u201cinsurmountable financial constraints\u201d in the wake of the coronavirus crisis.<\/p>\nThe board of USA Rugby has voted to file for chapter 11 bankruptcy as a result of \u201cinsurmountable financial constraints\u201d in the wake of the coronavirus crisis.<\/p>\n
The governing body suspended sanctioned competition and rugby activities indefinitely on March 20 due to the ongoing global pandemic.<\/p>\n
According to the United States Courts website, a case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a \u2018reorganization\u2019 bankruptcy.<\/p>\n
USA Rugby will undergo a restructuring process with input from World Rugby, while the country\u2019s men\u2019s and women\u2019s senior national teams will continue to compete as normal when rugby returns.<\/p>\n
The governing body described the decision as the best way to \u201cdeliver a foundation for future stability\u201d.<\/p>\n
\u201cFollowing detailed consultation with legal advisers, the USA Rugby board of directors and Congress voted to officially file Chapter 11 bankruptcy as a result of compounded and insurmountable financial constraints,\u201d read a statement.<\/p>\n
\u201cThe current suspension of sanctioned rugby activities caused by the ongoing Covid-19 pandemic has accelerated the existing financial challenges facing the union, and a reorganization process will now be progressed with input from World Rugby.<\/p>\n
\u201cThe USA Rugby board and Congress agree that filing for Chapter 11 bankruptcy supported by a robust action plan, is the optimal strategy in these exceptional circumstances. It is the best platform to swiftly and efficiently address challenges and deliver a foundation for future stability.\u201d<\/p>\n
The United States\u2019 men\u2019s team, ranked 16th in the world, lost each of their four Pool C matches at last year\u2019s World Cup in Japan, including a 45-7 defeat to finalists England.<\/p>\n
USA Rugby chairman Barbara O\u2019Brien said in a statement: \u201cThis is the most challenging period this organisation has faced and all resolves were never taken lightly in coming to this determination.<\/p>\n
\u201cWhile the current climate is of course much larger than rugby, we remain focused with stakeholders and supporters in the continued effort toward a balanced rugby community where the game can truly grow.\u201d<\/p>\n