USA Gymnastics Bankruptcy May Leave Sex-Abuse Victims Unpaid (1)

USA Gymnastics, under threat of being decertified by the U.S. Olympic Committee, filed for bankruptcy after running short of funds to pay victims of Larry Nassar’s sexual abuse.

The organization filed for Chapter 11 status in the Southern District of Indiana on Dec. 5 with estimated total assets and liabilities of $50 million to $100 million, according to a court filing. USAG aims to continue operating while it settles the victims’ claims, which it says are covered by insurance previously purchased by the organization, according to a statement.

Larry Nassar

Photographer: Jeff Kowalsky/AFP via Getty Images

But in court filings, USAG said there may not be ...