USA Gymnastics has reached an agreement on a proposed $425 million settlement with hundreds of women who claimed they were sexually abused by former team doctor Larry Nassar or others affiliated with the sport. 

The said offer was filed in U.S. Bankruptcy Court for the Southern District of Indiana late Tuesday. It was reported to be a part of the reorganization plan that will allow the USA Gymnastics to rise from bankruptcy.

The offer was put together by the USA Gymnastics and the Survivors Committee, Associated Press reported. However, the plan still needs to be approved by the survivors and other creditors.

The proposal is nearly double the $215 million that the USA Gymnastics proposed in January last year.

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Not Enough Funds For the $425M Settlement Plan 

USA Today Sports reported that there were not enough funds for the said settlement yet, and agreements are still needed to be reached with some insurance carriers.

"Let me be clear, it's not funded. There's a lot of work left to be done before this is over," John Manly, an attorney who represents many of the survivors, including Olympic champions Simone Biles and Aly Raisman.

In a statement, the U.S. Olympic and Paralympic Committee (USOPC) said they would contribute substantially to the compensation that would be given to the survivors under the new plan.

The committee also urged some insurance carriers to join and support the plan's "fair resolution" for abused victims. In the voting process to determine whether the claimants accept the offer, at least half of the claimants would have to vote to approve the agreement.

The majority also needs to represent at least two-thirds of the monetary value of the settlement. The survivors would have to agree to end claims against USA Gymnastics, the USOPC, as well as Bela and Martha Karolyi in exchange for accepting the settlement.

To date, more than 500 women claimed that Nassar sexually abused them. It was still unclear how much each survivor would receive from the settlement plan.

"We anticipate that this plan will be confirmed later this year and greatly appreciate all parties' efforts to get to this point," USA Gymnastics said in their statement.

Sexual Allegations Against Larry Nassar

Larry Nassar has pleaded guilty to first-degree criminal sexual misconduct in November 2017. Nassar, who became a team physician and assistant professor at Michigan State University (MSU) in 1997, was also reported to sexually abuse a six-year-old daughter of a family friend.

In January 2018, Nassar received a sentence of 45 to 175 years of imprisonment for the sexual assault charges. At that time, a total of 156 women and girls made statements over seven days.

In May 2018, MSU agreed to a $500 million settlement for more than 300 women and girls who claimed Nassar sexually abused them.

Hundreds of athletes came forward over the last five years, who claimed Nassar abused them "under the guise of treatment." Some of his victims were Simone Biles and Aly Raisman.

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Written By: Joshua Summers

WATCH: How Larry Nassar Got Away With Decades of Sexual Abuse - From The New York Times