U.S. Challenges USA Gymnastics’ Bankruptcy Payment Details

USA Gymnastics hasn’t given sexual abuse survivors enough information about how much its insurance policies are worth and what parties will be released from litigation under a pending bankruptcy reorganization plan, the Justice Department said.

The U.S. Trustee’s Office, which polices the nation’s bankruptcy system, Tuesday urged the U.S. Bankruptcy Court for the Southern District of Indiana to reject USAG’s request to send its Chapter 11 plan to a creditor vote.

USAG would seemingly leave accusers with unanswered questions about how much they ultimately could receive for their claims against the organization for failure to protect them from former national ...