The National Rifle Association filed for Chapter 11 bankruptcy protection in Dallas, plans to restructure as a Texas nonprofit and left open the possibility of relocating its headquarters to the Lone Star State in the future in a Friday announcement.
The NRA and one of its subsidiaries filed petitions in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, according to a press release from the NRA. Court documents list both assets and liabilities of $100 million to $500 million.
The company plans to restructure as a Texas nonprofit and to "exit what it believes is a corrupt political and regulatory environment in New York."
The gun-rights group has been a New York-registered nonprofit since 1871. For now, the NRA's headquarters will remain in Fairfax, Virginia, but the organization says it has formed a committee to study opportunities for relocating segments of its business operations to Texas or other states.
"The Association will analyze whether a move of its headquarters ... is in the best interests of its members. In the meantime, the NRA’s general business operations will remain in Fairfax," the organization said in a press release.
For its bankruptcy, the NRA will propose a plan that provides full payment to "all valid creditors’ claims." William Brewer of Brewer, Attorneys & Counselors; along with Patrick Neligan of Neligan LLP will act as counsel for the NRA in its bankruptcy proceedings. Brewer and Neligan are based in Dallas.
The organization had a rocky relationship recently with New York. The New York attorney general’s office, which oversees the state’s charities bureau, filed a lawsuit last August seeking to dissolve the NRA, alleging that insiders violated the state’s nonprofit laws by illegally diverting tens of millions of dollars from the group, according to the Wall Street Journal.
# Jobs, Estimated
| Rank | Prior Rank | Date of Transaction |
|---|---|---|
1 | 1 | JPMorgan Chase - |
2 | 2 | Uber Technologies - |
3 | 3 | Allstate Insurance Company - |
