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USA Rugby have announced that a significant hurdle in their financial struggles has been passed. On Monday the Delaware Bankruptcy Court approved their Chapter 11 debt reorganization plan, which means as of today they have entered the post-bankruptcy phase.
While details provided were limited, the agreement will see USAR repaying its creditors over a period of five years. The Court’s decision comes five months after USAR filed for Chapter 11 Bankruptcy as they faced an increasing debt with no further gate revenues available in 2020 due to COVID-19.
USAR CEO Ross Young provided a brief statement in an official release:
“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.”
Organizational restructuring remains ongoing with new councils nominated for Youth & High School, Senior Club, and International rugby. In June USAR agreed to relocate their offices to Glendale as part of a deal that will see Infinity Park as a preferred venue for training and international matches.
