USA Cricket News: Judge Approves Settlement Agreement, Mutual Release, and Interim Financing in USA Cricket Chapter 11 Case

On the eve of the 250th anniversary of the country's founding, a Colorado judge granted a Settlement Motion and approved interim financing in the USA Cricket bankruptcy case, bringing much needed relief to the sport's many fans.

On the eve of the 250th anniversary of the country's founding, a Colorado judge granted a Settlement Motion and approved interim financing in the USA Cricket bankruptcy case, bringing much needed relief to the sport's many fans. The judgement also marked a severe setback for the legal strategy adopted by the previous leadership of USA Cricket, which ultimately resulted in operational stasis, large allocations towards litigation expenses instead of spending on cricket development, and lost time in the runup to LA28.

Under the settlement, ACE will pay $340,000 into an escrow account to be used for administrative expenses that accrued prior to January 12, 2026 and other pre-petition unsecured claims. ACE will also create a post-petition financing credit facility of up to $480,000 that will be used towards financing the costs of administering the bankruptcy case. The settlement also contemplates an Exit Facility, comprising credit not exceeding $316,250 that is intended to finance operating costs and working capital. Together, these funds will enable USA Cricket to emerge from bankruptcy with the capacity to resume operations.

The settlement comes with the precondition that USA Cricket complies with ICC's reinstatement terms. As outlined below, the settlement also reinstates the binding Term Sheet that was signed by USA Cricket and ACE and subsequently unilaterally revoked by USA Cricket, with ACE resuming its payments under the Term Sheet following the reinstatement of USA Cricket by the ICC.

While the sport of cricket predates the founding of the United States, it has been a roller coaster ride lately for its millions of fans. The turmoil began with governance failures and internecine board disputes, leading eventually to the organization's suspension of its membership by the International Cricket Council (ICC) and loss of its USOPC accreditation. Simultaneously, the ongoing battle between USA Cricket and American Cricket Enterprises (ACE), USA Cricket's commercial partner, escalated culminating in the surprising decision by USA Cricket to unilaterally terminate the contract in August 2025.

ACE fought back, launching arbitration and seeking a temporary restraining order in Colorado state court. On October 1, 2025, just hours before the state court was set to hold a preliminary injunction hearing that could have resulted in blocking the contract termination, USA Cricket moved to file for Chapter 11 bankruptcy. This legal maneuver triggered an automatic stay, froze the state court lawsuit and moved the dispute to federal bankruptcy court. While accusing ACE of withholding funds and manipulating board decisions, Venu Pisike, then USA Cricket CEO, said: “Our decisions were not about rejecting partnership, but about reclaiming accountability." The events that followed tested this notion.

In the months following October 2025, USA Cricket spiraled into further dysfunction, with the CEO being furloughed and the board deadlocked. ACE filed a motion asking the court to appoint an independent Trustee. The court initially denied the motion, giving the board a final chance to file a restructuring plan. However, the deadlocked board missed its strict 90-day statutory deadline to submit a plan.

In January 2026, Judge Michael E. Romero, issued a pivotal ruling. Finding that USA Cricket was fundamentally "incapable of reorganizing" under its existing, fractured leadership, he officially revoked the organization's Subchapter V designation, converting it into a Chapter 11 bankruptcy and approving the appointment of Mark Dennis as the independent Chapter 11 Trustee. This stripped the board of its executive powers, centralizing all operations, corporate governance, and legal negotiations entirely under the Trustee's sole authority. (Never mind that, despite this ruling, some erstwhile operating committees installed by the previous board attempted to continue to assert authority in the guise of keeping things moving in the forward direction). Meanwhile, ACE stood its ground. It had spent untold millions on creating stadium infrastructure and standing up the Major League Cricket.

The Trustee recognizing that the bankruptcy estate was functionally insolvent in light of the creditors' claims, proceeded to exercise his business judgment and negotiated a settlement directly with ACE. In a Settlement Motion filed on April 13, 2026, the Trustee proposed among other things, that ACE would agree to post-petition financing to the tune of $480,000 and USA Cricket would reinstate the original Term Sheet between ACE and USA Cricket.

This resulted in further objections and further delays in resolving the matter. The objections came from several ousted board members. In a somewhat perplexing late stage development, a competing league called the National Cricket League filed an objection as well. As Judge Romero noted, "NCL was not a creditor when it filed its objection. Rather, NCL appears to be a competitor of ACE. NCL allegedly purchased two claims after it filed its objection. NCL did not file a notice of purchase of these claims, nor did it file copies of those proofs of claim." In any event, the Judge noted many open questions regarding standing, while also emphasizing that proofs of claim were filed after the deadline of December 10, 2025. Despite these open questions, the Judge allowed the objecting parties to participate in an evidentiary hearing and considered the merits of their objections. In the July 2, 2026 ruling, Judge Romero noted that the Court was not persuaded that their objections should be sustained.

In reviewing the matter, the Judge said that "The Trustee’s burden is not high; he need only show his decision is reasonable and made for a rational business purpose.
The bar the trustee must clear to obtain approval of a settlement agreement is barely above the floor." The Judge concluded that the Trustee’s decision to enter into the settlement with ACE, "shows at least rudimentary due diligence."

Highlighting the uncertainty of USA Cricket prevailing in State Court proceedings as well as the cost and complexing of litigating ACE's claims, the Judge concluded that the "proposed settlement with ACE is not so unreasonable as to warrant denial."

With the Olympics in sight and with Team USA continuing to make strides on the world stage, this judgment affords USA Cricket a chance to turn a page on its recent travails, including internal governance failures, suspension from the International Cricket Council, and severe financial distress.

2026 Jul 03

USA Cricket News: Judge Approves Settlement Agreement, Mutual Release, and Interim Financing...

2023 May 05