Bally Total Fitness Holding Corp., the Chicago-based operator of 328 gyms in 25 states, has reached an agreement that will enable it to emerge from bankruptcy reorganization, according to court documents filed last week.
A group that includes JPMorgan Chase Bank, Wells Fargo Foothill LLC, CIT Business Credit and Anchorage Crossover Credit has struck a deal that will help Bally reduce its debt by $660 million, according to a 171-page filing in U.S. Bankruptcy Court in the Southern District of New York.
Bally filed for Chapter 11bankruptcy in December, a little more than a year after it emerged, heavy with debt, from an earlier bankruptcy reorganization.
The proposed balance-sheet restructuring, which must be approved by the court, calls for holders of secured debt under the pre-petition term loan to receive 94 percent of the reorganized company’s equity.
As of Dec. 31, Bally had assets of $1.16 billion and liabilities of $1.58 billion.
For the 12 months ended Dec. 31, its revenues were $634.4 million.
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byerak@tribune.com
