USA Gymnastics’ $400 Million Settlement OK’d for Claimant Vote

USA Gymnastics won court approval to solicit creditor votes on its reorganization plan that proposes to pay $400 million of insurance proceeds to settle hundreds of sexual abuse claims.

The plan disclosure approval, issued in a virtual hearing Monday by Judge Robyn L. Moberly of the U.S. Bankruptcy Court for the Southern District of Indiana, allows the bankrupt sport-governing organization to send its Chapter 11 plan to claimants for their votes. The judge will consider the plan for final approval in December.

The approval signifies a major hurdle cleared by USA Gymnastics in its quest to wrap up Chapter 11 ...