USA Gymnastics made the move to seek bankruptcy protection as the embattled organization prepares for the financial fallout from the victims of former team doctor, Larry Nassar.
The organization filed Wednesday in the Southern District of Indiana for Chapter 11 Bankruptcy Protection. They are also being extremely transparent in the filing, announcing that the bankruptcy protection will "enable USA Gymnastics to continue to support its athletes, to fully operate and meet its responsibilities to the entire membership and to expeditiously resolve the claims made by the survivors of sexual abuse perpetrated by Larry Nassar."
USA Gymnastics claim they currently have $50 - $100 million in debt. They list former president Steve Penny as one of the top creditors, who is currently owed $340,000.
Penny was arrested last month, three weeks after he was indicted by a grand jury for tampering with evidence.
As we reported, survivors of Larry Nassar's sexual abuse, including gold medal champion Aly Raisman, are going after the organization claiming they did not do enough to prevent the abuse of the young girls.
Nassar is currently serving hard time, and is trying to get out of a scheduled deposition in the case brought by Raisman.