NRA files Chapter 11 bankruptcy, to reincorporate in Texas
A press release issued by the National Rifle Association (NRA) stated that it had filed Chapter 11 bankruptcy and would
NRA files Chapter 11 bankruptcy, to reincorporate in Texas A press release issued by the National Rifle Association (NRA) stated that it had filed Chapter 11 bankruptcy and would reincorporate in Texas. The move is part of a strategic maneuver for advancement, the association claimed. When an organization files Chapter 11 bankruptcy, this kind of movement is allowed. Moving to Texas will...
NRA files Chapter 11 bankruptcy, to reincorporate in Texas
A press release issued by the National Rifle Association (NRA) stated that it had filed Chapter 11 bankruptcy and would reincorporate in Texas. The move is part of a strategic maneuver for advancement, the association claimed. When an organization files Chapter 11 bankruptcy, this kind of movement is allowed.
Moving to Texas will enable the non-profit organization start afresh with more continued growth and success, according to the press release.
NRA's objective is to go through the restructuring process quickly while using "the protection of the bankruptcy court" which may help it to "dump New York". NRA called it a mere chess move to evade New York's toxic politics and not a response to financial challenges as the move comes "at a time when the NRA is in its strongest financial condition in years".
Meanwhile questions are being raised over the move, given that New York Attorney General Letitia James recently sued NRA over the latter's executives redirecting charitable contributions made to NRA to their own pockets. "We filed suit against the NRA because they were diverting funds from this charitable organization for their own personal use and we will continue our effort because this organization has gone unchecked for years and it's critically important that we continue to hold them accountable, even in bankruptcy court," said New York Rep. Alexandria Ocasio-Cortez.
The move is not meant to change any of NRA's functions and only "to streamline costs and expenses, proceed with pending litigation in a coordinated and structured manner, and realize many financial and strategic advantages".
"The plan allows us to protect the NRA and go forward with a renewed focus on Second Amendment advocacy," said NRA President Carolyn Meadows.
"The NRA is pursuing reincorporating in 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. This is a transformational moment in the history of the NRA," said NRA CEO Wayne LaPierre without referring to the suit against the organization.