USA Cricket to exit bankruptcy after court approves settlement: Details
What's the story
The United States Bankruptcy Court has approved a settlement between USA Cricket and American Cricket Enterprises (ACE), paving the way for the former's exit from bankruptcy. The agreement ends years of internal conflicts, legal disputes, and a deteriorating commercial relationship. It restores their partnership under the Term Sheet and releases over $1.1 million in funds to assist USA Cricket's recovery from Chapter 11 proceedings.
Financial aid
Financial lifeline for USA Cricket amid recovery process
The settlement offers USA Cricket a crucial financial lifeline. ACE will provide $480,000 in post-petition financing for Chapter 11 operations, contribute $340,000 toward administrative and unsecured claims, and provide exit financing to help the governing body emerge from bankruptcy. The package also includes ACE withdrawing its $150 million proof of claim against USA Cricket. This comprehensive support is aimed at stabilizing the organization amid its recovery process.
Legal battle
Dispute between USA Cricket and ACE
The dispute between USA Cricket and ACE has been going on for several years. It was a historic clash between former USA Cricket chairman Venu Pisike, director Srinivas Salver, and ACE over a long-form commercial agreement. Despite Pisike being part of the board that unanimously approved the original 2019 ACE deal, there were years of friction over not just the commercial agreement but also governance issues within USA Cricket itself.
Governance failures
ICC suspended USA Cricket over governance issues
The prolonged breakdown in relations between USA Cricket and ACE left the former perpetually cash-strapped, restricting its investment capacity in national teams. The financial woes culminated in September 2025 when the ICC suspended USA Cricket after repeated warnings over governance failures, internal conflicts, lack of structural clarity, and inability to meet administrative standards expected of a national governing body.
Bankruptcy proceedings
Bankruptcy protection and Chapter 11 trustee appointed to oversee affairs
Amid tensions with the ICC, relations with ACE also soured. In October 2025, just hours before a scheduled hearing in the dispute, USA Cricket filed for Chapter 11 bankruptcy protection. By early 2026, the bankruptcy court appointed a Chapter 11 trustee to oversee USA Cricket's affairs after revoking its Subchapter V designation. Seven separate objections were filed against the proposed settlement in May by various parties challenging different aspects of it.
Court ruling
Judge Romero's ruling boosts private cricket investment in America
After hearing the objections, Judge Michael E. Romero overruled them and approved both the settlement and financing motions. The court found that the settlement was reasonable under bankruptcy law, rejected claims of it being an improper "sub rosa" reorganization plan, and allowed USA Cricket to assume the 2019 Term Sheet with ACE. This ruling comes at a crucial time for private cricket investment in America, further boosting the sport's growth in the country.