CHICAGO – Bally Total Fitness, Chicago, the second-highest revenue-producing health club company in the United States, has emerged from bankruptcy, the company announced Monday.
Bally’s time in bankruptcy lasted only two months after the company filed for Chapter 11 protection on July 31. Harbinger Capital Partners, a New York-based private equity firm and one of Bally’s shareholders, becomes Bally’s new owner after purchasing the company for $233.6 million.
At the time of Bally’s filing for bankruptcy, the company listed assets of $397 million and debt of $761 million. Bally emerges from Chapter 11 protection with access to at least $30 million in cash and a $25 million working-capital credit line through 2011.
Bally now becomes a private company. Its stock quote on the Pink Sheets exchange Monday was 35 cents.
In addition to Harbinger’s ownership, Bally also announced that:
In conjunction with its emergence from Chapter 11, Bally converted its debtor-in-possession (DIP) facility to an exit credit facility. Morgan Stanley Senior Funding Inc. is the sole lead arranger and sole bookrunner for the $292 million super-priority secured DIP and senior secured exit credit facilities.
Bally also announced that funds which had been deposited in respect of subscriptions for notes that were to be issued in a rights offering associated with a noteholder-sponsored restructuring plan—which was not consummated—will be returned promptly.