USA Rugby to file for bankruptcy due to coronavirus2Photo© hindustantimes.com

USA Rugby to file for bankruptcy due to coronavirus

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By: Reuters | Published: March 31, 2020 5:45:45 pm

USA Rugby will file for Chapter 11 bankruptcy due to “insurmountable financial constraints.” (Representational Image)  USA Rugby will file for Chapter 11 bankruptcy due to “insurmountable financial constraints” that were accelerated by the coronavirus pandemic, the governing body said on Monday.

The board of directors voted overwhelmingly in favor of the plan over the weekend and said that with a financial support package from World Rugby, it hopes to “deliver a foundation for future stability.”

Under the reorganization plan there will be no impact on the men’s and women’s senior national teams, which had previously qualified for the 2020 Tokyo Olympics, which have been pushed back a year due to the global health crisis.