NRA to Declare Bankrupcy, Reorganize in Texas
The embattled National Rifle Association is seeking an exit from its legal woes by declaring bankruptcy, with a plan to reorganize in the state of Texas.
In a statement to reporters on Friday, NRA CEO Wayne LaPierre said the NRA had reached a “transformational moment” and that a move to Texas opens “a pathway to opportunity, growth and progress.” He added that “an important part of this plan is ‘dumping New York,’” where the NRA has been incorporated for more than 150 years, but has come under immense legal pressure, including a move to dissolve the organization over allegations of unlawful self-enrichment by senior executives. LaPierre referred to Texas as a “state that values the contributions of the NRA, celebrates our law-abiding members, and will join us as a partner in upholding constitutional freedom.” The NRA’s top lawyer, William A. Brewer III said the plan allows the NRA “protection from New York officials who it believes have illegally weaponized their powers against the NRA and its members.”
NRA is filing Chapter 11 bankruptcy in federal court in Texas. Its petition filed January 15th lists millions in unsecured obligations to creditors, including nearly $1.3 million alone to the NRA’s former PR firm Ackerman McQueen. Straining credibility, the NRA sought to put a positive spin on its finances, insisting, “the move comes at a time when the NRA is in its strongest financial condition in years,” while adding: “Chapter 11 proceedings are routinely utilized by businesses, nonprofits and organizations of all kinds to streamline legal and financial affairs.” The NRA said it intended to render “payment in full of all valid creditors’ claims” and “to uphold commitments to employees, vendors, members, and other community stakeholders.”
In addition to reorganizing in Texas, the NRA is also weighing moving its headquarters from the current location in Northern Virginia. “The Association will analyze whether a move of its headquarters, now located in Fairfax, Virginia, is in the best interests of its members,” it writes. “In the meantime, the NRA’s general business operations will remain in Fairfax.”
This is a developing story and will be updated.
Source: Read Full Article