USA Gymnastics files for Chapter 11 bankruptcy

This is the best tl;dr I could make, original reduced by 74%. (I'm a bot)

5:56 PM ET. USA Gymnastics filed for Chapter 11 bankruptcy on Wednesday as it searches for ways to remain afloat in the wake of the Larry Nassar sexual abuse scandal.

Defense attorneys involved in the case expect the bankruptcy declaration will stop all legal proceedings in civil court, including an ongoing discovery process and depositions of USA Gymnastics officials.

Carson's statement said USA Gymnastics has no assets significant enough to help settle those lawsuits.

Wednesday's filing is the latest in what has been a tumultuous path forward for USA Gymnastics since Nassar was arrested on sexual conduct charges more than two years ago.

A grand jury indicted former USA Gymnastics president Steve Penny in October on charges of evidence tampering.

Among the creditors listed in Wednesday's bankruptcy filing, Penny is listed as someone who is still owed $340,000 in severance pay, which USA Gymnastics disputes.

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