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New Delhi: USA cricket has filed for bankruptcy ahead of hearing in its dispute with the American Cricket Enterprises (ACE). In what comes as a big blow to them, the Chapter 11 filing makes USAC the first ICC member in the world to go bankrupt, mentions a report.
As mentioned in Cricbuzz, there were reports earlier that chairperson Venu Pisike was considering the move to file for bankruptcy and now that it is done, the USAC has paused the legal hearings in the matter related. The same report further mentions that an official from the ACE accused USAC of not having any intention of bettering its cricket or for the players in the squad.
The body has been further accused of being motivated by political incentives as reported by multiple media outlets. As quoted by Cricbuzz, an ACE representative stated that: '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'.
Meanwhile, the schedule for bankruptcy will provide a preliminary look at the USAC's source of funds which include cash in the bank, accounts receivable, office equipment and other small assets which are listed. It is being learnt that the unsecured claims have a total of around just over half a million dollars.
Additionally, it has also been reported that the board governing USAC refused to resign despite requests 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 of massive concern. Payments under the contracts could have been delayed or renegotiated but they will now be in the hands of the decision-makers at court.
