The USA Rugby Congress and Board approved and ratified a move to file Chapter 11 Bankruptcy in the next couple of days, this according to sources close to the issue.

Not everyone was for Chapter 11, as there are reports that some felt it isn't a big enough change.

Chapter 11 will allow USA Rugby to remain in existence, and for the leadership to, temporarily at least, remain while a new plan (or plans) for doing business are drawn up. World Rugby will now step in to provide some bridge financing while that all takes place.

However, it is possible that a bankruptcy court might deny the application for Chapter 11 and instead insist on Chapter 7, which would dissolve USA Rugby.

The decision was made during a two-hour conference call today, Sunday, March 29 among Congress and Board members. The filing will have to happen Monday or Tuesday because USA Rugby's insurance covering liability for Directors and Officers (D&O Insurance) currently only covers actions through March 31, 2020. 

See how we got here, and more details on USA Rugby's financial and organizational problems>>

 

 

 

 

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60 seconds on where the bucks (or lack of bucks) stop with the USA Rugby financial sinkhole. Yes we name names.

A post shared by Alex Goff (@goffrugbyreport) on Mar 25, 2020 at 12:18pm PDT