CHICAGO – Bally Total Fitness has secured extensions of existing forbearance arrangements until July 31 from beneficial holders of a majority of its 9 7/8 percent senior subordinated notes due 2007 and its 10 1/2 percent senior notes due 2011 as well as from the lenders under its $284 million senior secured credit facility, the company announced today.
The extension agreements prohibit any enforcement action by the parties but permit the senior noteholders to declare the senior notes due and payable, as long as no other enforcement action is taken. Bally says it will not pay any fees in connection with the extensions.
Bally continues to solicit votes for approval from its noteholders for the previously proposed prepackaged Chapter 11 plan of reorganization. The voting deadline for that solicitation is 4 p.m. EDT on July 27.
Bally also has entered into confidentiality agreements with Liberation Investments and Harbinger Capital Partners, proponents of an alternative restructuring proposal, and has begun to engage in due diligence discussions with these shareholders, who have agreed to complete their due diligence by Friday.