Bally Making Payments to Former Stockholders

(no)

CHICAGO -- Bally Total Fitness announced Monday it has begun the process of making an initial cash distribution of 31 cents a share to former stockholders, in accordance with the terms of Bally’s Chapter 11 bankruptcy plan.

Bally’s disbursing agent reserved $3.5 million, pending disallowance of certain outstanding claims that were filed in Bally’s Chapter 11 case. The reserve may fund a second distribution of old common stock, subject to satisfactory resolution of the outstanding claims.

Bally filed for bankruptcy in July 2007 but emerged as a private company two months later with the financial backing of Harbinger Capital Partners, a New York-based private equity firm which had been one of Bally’s shareholders.

Suggested Articles:

Planet Fitness has reopened 800 locations since May 1, reporting overall average membership levels have remained relatively consistent.

Club Pilates is set to open 21 new locations in June and has studios in five other locations set to open in states mandating gyms remain closed.

The 24 Hour Fitness executive team has been busy on two fronts: implementing new operating protocols to reopen clubs and reportedly looking at how bes