< Back to previous page

Bally Total Fitness Holding Corp cleared to emerge from Chapter 11 bankruptcy

Published on 20 Aug 2009 under category: legal

US health club operator Bally Total Fitness Holding Corporation's reorganisation plan has been approved by a federal judge in New York, meaning the firm is now clear to emerge from Chapter 11 bankruptcy.

Judge Burton Lifland gave the green light for the firm to exit Chapter 11 bankruptcy under control of lenders led by JP Morgan Chase and Anchorage Advisors, bankruptcy solicitors may be interested to learn.

According to court papers filed last month, JP Morgan Chase is to receive 50.5 per cent of the company's common stock, while Anchorage Advisors will take 33.7 per cent.

The firm, which operated 328 health clubs, applied for Chapter 11 bankruptcy protection in December, the second time it has sought this option in the space of 17 months.

In other news, Sue Davenport, the former chief executive of Leeds City Credit Union, was recently declared bankrupt at Leeds County Court, insolvency solicitors may be interested to learn.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.