Bally Total Fitness will move ahead with bankruptcy filing

Discussion in 'Other News' started by jamwadmag, Aug 3, 2007.

  1. jamwadmag

    jamwadmag Road Train Member

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    Bally Total Fitness will move ahead with bankruptcy filing

    Bloomberg News
    July 28, 2007


    Bally Total Fitness Holding Corp., the nation's largest chain of fitness centers, said Friday that it will file for bankruptcy protection.

    Chicago-based Bally, which said in May that it was considering a prepackaged bankruptcy plan, said it won enough votes to proceed, dismissing a rival plan from a group of shareholders that included Harbinger Capital Partners Masters Fund I Ltd.

    Its plan, which wipes out equity, can go forward now that it has the required two-thirds of votes from holders of its notes due 2011.

    "The company has been unable to reach agreement on an alternative restructuring proposal put forth by certain shareholders and has determined that the prompt filing of the plan in bankruptcy court is appropriate," Bally said.
     
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  3. Baack

    Baack Road Train Member

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    Its plan, which wipes out equity,

    I don't own stock in this company
    But this should be illegal
    They will cancel all stock and reissue new stock and use it as collateral for new funding.
    This should be illegal but is done all the time in bankruptsy court.
     
  4. Peeping_Tom

    Peeping_Tom Light Load Member

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    i didn't know they had financial problems. i just love the commercials they show.
     
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