(Reuters) – The National Rifle Association filed petitions in a US bankruptcy court on Friday seeking creditors’ protection through restructuring, the arms rights group said.
ANR filed petitions for Chapter 11 with the US Bankruptcy Court in Dallas, it said in a press release.
ANR said it would restructure as a nonprofit in Texas to leave what it said was a “corrupt political and regulatory environment in New York,” where it is currently registered.
The influential group said in a statement that there will be no immediate changes in operations or manpower and that “it will continue to advance the company in the future – facing anti-second amendment activities, promoting gun safety and training.” and promoting public programs. in the United States. “
The second amendment to the US Constitution guarantees the right to keep and bear arms.
In August last year, New York State Attorney General Letitia James sued for dissolving the NRA, claiming that senior nonprofit leaders had diverted millions of dollars for personal use and to buy the silence and loyalty of former employees.
The lawsuit filed by James in a Manhattan state court claims that ANR leaders paid for family trips to the Bahamas, private jets and expensive meals that contributed to a $ 64 million reduction in ANR’s balance sheet in three years, turning a surplus in a deficit.
ANR responded by suing James, a Democrat, in federal court, saying it violated ANR’s right to free speech and seeking to block the investigation. The dispute remains ongoing.
The NRA in recent decades has been one of the main voices opposing proposed or existing arms control measures.
ANR’s actions are likely to suspend the prosecutor general’s trial, and a reinstatement could remove her from her ability to seek the group’s dissolution. In his trial, James said that the incorporation of ANR as a non-profit organization in New York gave him the authority to dissolve it.
Reporting by Jan Wolfe and Jonathan Stempel; Editing by Leslie Adler, Rosalba O’Brien and Jonathan Oatis