Bally Total Fitness May File For Bankruptcy
Bally Total Fitness may file for Chapter 11. Bally Fitness is the largest commercial operator of fitness centres in North America, some of which are franchised.
"On March 14, 2007, the Company's liquidity was approximately $45 million. The Company's availability under its amended and restated Credit Agreement, subject to compliance with the terms thereof, was approximately $2.1 million.
Further, as of March 14, 2007, the Company had approximately $827 million in debt outstanding, which includes approximately $19 million in letters of credit. Interest payments on the Company's public notes are due in April, July and October 2007, along with the maturity of the $300 million of 9-7/8% Senior Subordinated Notes in October 2007. The Company is exploring a broad range of options to restructure its debt obligations. If the Company is unable to restructure that debt, is unable or determines not to make the interest payments, or otherwise determines that its financial condition and obligations necessitate a broader restructuring, it may seek to reorganize its operations under Chapter 11. The Company has engaged Jefferies & Company, Inc. as its financial advisor."
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