USA Cricket (USAC) has filed for bankruptcy ahead of its hearing in its dispute with American Cricket Enterprises (ACE). The Chapter 11 filing makes USAC the first ICC member in the world to go bankrupt.
Earlier, there were reports that chairperson Venu Pisike was considering the move to file for bankruptcy.
As a result, the route undertaken by the USAC has paused the legal hearings in the matter related thereto. An official from the ACE accused USAC of not having any intention of bettering its cricket or for the players in the squad, further accusing the body of being motivated by political incentives, according to reports in many media outltets.
"USAC could not bear for the preliminary injunction hearing to even begin, and knew the result was a forgone conclusion: it had no basis to terminate the parties' agreement and was recklessly imperiling the success of cricket in the US. USAC has zero regard for the best interests of cricket and its players, and is only motivated by politics and its directors' personal agendas", stated an ACE representative, as quoted by Cricbuzz.
The schedule for the bankruptcy provides a preliminary look at USAC's source of funds which are bank cash, accounts receivable, office equipment and other small assets which are listed. The unsecured claims have a total of around just over half a million dollars.
It has also been reported that the board governing USAC refused to resign. The requests have been repeatedly coming in from the ICC and USOPC's end. This is to enable smooth passage for the reforms of government and cash flows being re-placed from the global administrative body.
When it comes to the players, this is surely a concerning outcome. Payments under the contracts could have been delayed or renegotiated. However, they will now be in the hands of the decision-makers at court. The fight for injunction with the ACE will put a pause on the cricketing board's pending bankruptcy proceedings. This, in turn, will shift key decisions from the Colorado court to the federal bankruptcy court.
