CHANHASSEN, MN -- Shares of Life Time Fitness stock fell to an all-time low after a margin loan call on Thursday forced Life Time CEO Bahram Akradi to sell 582,000 of his shares, worth $11 million and making up about 13 percent of Akradi’s entire direct holdings in the company.

On Friday, Life Time shares dropped $1.11, or 5.8 percent, to close at $17.90. Life Time had a six-month high of $41.50 in September. The stock has lost 64 percent this year.

Akradi, Life Time’s biggest shareholder, reportedly owned 4.3 million shares of Life Time stock in May. Approximately 3.5 million shares of Akradi’s stock remain subject to pledges under margin loans, according to a company statement.

The shares of stock were sold by one of the financial institutions that made some of the loans to cover Akradi’s obligations, according to the company. In light of current market conditions, further sales of Akradi’s Life Time stock may occur to satisfy the minimum margin requirements under the loans.

Margin loans are backed by stock, but the value of that stock must maintain preset levels, according to the Minneapolis/St. Paul Business Journal. When values fall below those benchmarks, the lender will issue a “margin call,” forcing the borrower to either liquidate some of his or her stock or add more cash to the account, according to the Business Journal.

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