Bally Total Fitness will move ahead with bankruptcy filing
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.