Bally Emerges From Chapter 11
| CHICAGO – Bally Total Fitness announced that it has successfully emerged from chapter 11 today as a private company just over two months after filing for bankruptcy protection on July 31, 2007. The restructuring arrangements funded by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund L.P. became effective today. |  |
Harbinger invested approximately $233.6 million in exchange for 100% of the common equity of reorganized Bally. In addition, senior noteholders will receive new senior second lien notes bearing interest at 13% as well as a consent fee equal to 2% of the face value of their Notes. Subordinated noteholders will receive a cash payment of $123.5 million in the aggregate, with the remaining balance of the subordinated notes satisfied through the issuance of approximately $200 million in new subordinated notes of reorganized Bally. The annual interest rate payable under the new subordinated notes is 15 5/8% as the payment-in-kind interest rate and 14% as the cash pay interest rate. Existing Bally shareholders and holders of certain equity-related claims will receive an aggregate distribution of $16.5 million.
More detailed information is available at www.ballyfitness.com and www.kccllc.net/bally.
Popularity: 19% [?]
