Filing Summary

In connection with its bankruptcy filing, on January 20, 2021, the NRA filed a brief containing certain information about the NRA. While much of the brief is dedicated to political hyperbole that is largely unrelated to a Chapter 11 proceeding, the document does contain some interesting disclosures.

Key Points

• The NRA discloses it currently employs approximately 490 people (p.4). This would indicate that staff departures and layoffs at the NRA over the past year have been significant as in their last financial disclosure, for 2019, the NRA previously indicated it had 770 employees.
• The NRA notes that other affiliated entities, such as the NRA Foundation, NRA Civil Rights Defense Fund, NRA Freedom Action Foundation, and its political action committees are not part of the bankruptcy filing. (p.4)
• The NRA discloses total assets of $203 million, and total liabilities of $153 million. (p.5)
• NRA Headquarters at Fairfax, Virginia allegedly had an appraised value of $61 million as of January 2019. (p.6)
• The NRA has two loans secured by a lien on NRA Headquarters. The brief indicates that the balance on these loans “was approximately $17 million.” (p.6)
• The NRA has an additional loan from Atlantic Union Bank that involves a revolving credit facility with total borrowing ability of $28 million, secured by a lien on certain NRA investment accounts at Morgan Stanley. (p.5-6).  Of that amount, the brief indicates the NRA has drawn approximately $14 million. 
• With respect to revenue, the brief indicates “a loyal and active base of members and donors benefited the NRA as its revenues in 2020 were only down by approximately seven percent as compared to the preceding year.” (p.7) 
• And with respect to expenses, the brief indicates “the NRA permanently reduced expenses by 23% in the last fiscal year and asked employees who remained on the job to take reduced salaries. To a person, each employee willingly took a salary/wage reduction during 2020 to ensure the viability of the NRA and its affiliated entities.” (p.7)
• Despite all the bluster about the unfairness of regulatory oversight, the brief acknowledges “the NRA seeks to avail itself of the protections of the Bankruptcy Code in order to continue its efforts to reduce operating costs and to address the ever-increasing litigation being filed against the NRA.”
• In the final paragraph, the brief says that the proposed plan of reorganization will pay creditors “in full.” (p.14)