Court approves Bally reorganization plan |
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Mon, 17 Sep 2007 21:00
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CHICAGO (AP) - Fitness center operator Bally Total Fitness Holding Corp. said Monday a bankruptcy court has confirmed the fitness center operator's reorganization plan to emerge from Chapter 11 bankruptcy.Bally said the confirmation by the U.S. Bankruptcy Court for the Southern District of New York clears the way for the company to exit bankruptcy by the end of the month as a private company.'We will exit bankruptcy as a stronger company, with a capital structure that will enable us to increase our level of investments in our clubs and pursue other initiatives to add value for our members,' said Bally Interim Chairman and Chief Restructuring Officer Don R. Kornstein.Under the plan, Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund LP would invest about $233.6 million in exchange for Bally's common equity.Bally said the plan will become effective once all conditions to funding are satisfied.If the Harbinger plan falls through, Bally said it can complete the restructuring under its original plan sponsored by Tennenbaum Capital Partners LLC, Goldman Sachs & Co. and Anschutz Investment Co., after satisfying certain conditions.Bally said in March that it might have to file for bankruptcy, citing more than $800 million in debt and just $45 million in cash on hand. It has since defaulted on its debt and been delisted by the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Bally Total Fitness ratings withdrawn after co files for bankruptcy - Moody's 