GLENDALE, CO – The Delaware Bankruptcy Court officially approved the Chapter 11 plan of reorganization presented by USA Rugby during a hearing this morning. The debtor plan is a proposal from USA Rugby to address creditor claims and reconcile bankruptcy debts over time. The plan approval indicates USA Rugby as ‘reorganized’ under the bankruptcy code and allows USA Rugby to operate post-Chapter 11 (Subchapter 5) bankruptcy, effective September 1, 2020.
- Delaware Bankruptcy Court approves USA Rugby debtor plan during hearing on August 31, 2020.
- Approval officially recognizes USA Rugby as ‘reorganized’ to the consent of the Court and no raised objections by USA Rugby creditors.
- Beginning September 1, 2020, USA Rugby will enter the post-bankruptcy phase, where secured creditors will be reimbursed over the next five years.
USA Rugby CEO, Ross Young noted, “This is an important step for USA Rugby and the go-forward plans of the game here in the United States. 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.”
No objections were raised during the hearing. Moving forward, USA Rugby will remain accountable for a five-year reimbursement plan with secured creditors. When completed, the organization will be fully discharged.
Here’s what CEO Ross Young had to say the last time he was on Rugby Wrap Up:
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