Meridian Sports Clubs LLC, North Hills, CA, has completed its reorganization and exited Chapter 11 bankruptcy with new owners and financing.
The announcement was made last week by Praesidian Capital, the New York-based private equity firm. Under the reorganization plan, Meridian exchanged debt for equity held by an affiliate of Praesidian Capital and an affiliate of another lender. The new financing includes a $7.5 million term loan extended in part by Praesidian and a $4.5 million revolving credit facility with Praesidian.
Meridian, which also goes by Bodies In Motion, made its bankruptcy filings Oct. 16 in U.S. Bankruptcy Court in the Central District of California, Woodland Hills, CA. The company listed assets between $1 million and $10 million and listed liabilities between $10 million and $50 million, according to court documents.
"We are pleased to have completed this process in less than eight months and to have achieved our main objective—the deleveraging of the company so that it has a strong financial structure for the future," Jason Drattell, Praesidian founder and managing partner, said in a statement. "Having worked with the fitness industry in the past, we understand the importance of creating the right brand and providing the right services to members. We are excited about the opportunities the new Meridian presents, particularly as we invest new money into facilities to ensure they meet the high standards our clients both expect and anticipate."
Meridian's latest club, the Island Club and Spa in Honolulu, is the ninth club in operation. The lone club in the Northern California area, located in San Rafael, is closing, according to a spokesperson. The remaining Meridian Sports Clubs are in Southern California.
Included in the nine clubs in operation are three David Barton Gyms, two in Los Angeles and one in Las Vegas.