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USA Rugby exits bankruptcy as reorganisation plan approved

The American national governing body declared bankruptcy in March, citing Covid-19 as the main factor after shutting down activities indefinitely.

USA RUGBY’S CHAPTER 11 reorganisation plan has received court approval, allowing the national governing body to emerge from bankruptcy on Tuesday, the organisation announced.

The Delaware Bankruptcy Court on Monday approved the USA Rugby debtor plan, a reimbursement proposal to address creditor claims and reconcile bankruptcy debts over five years.

“This is an important step for USA Rugby and the go-forward plans of the game here in the United States,” USA Rugby chief executive officer Ross Young said.

“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.”

As USA Rugby enters a post-bankruptcy phase, the organisation will be accountable for reimbursement over the next five years to secured creditors.

USA Rugby declared bankruptcy in March, citing Covid-19 as the main factor after shutting down activities indefinitely due to the coronavirus pandemic.

© – AFP, 2020

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