Article: Bally Total Fitness Wins OK to Exit Bankruptcy

NEW YORK (Reuters) - A federal bankruptcy judge has approved Bally Total Fitness Holding Corp.'s reorganization plan, clearing the way for the U.S. health club operator to emerge from Chapter 11 under its lenders' control.

Judge Burton Lifland of the federal bankruptcy court in Manhattan confirmed the plan at a hearing on Wednesday [Aug. 19]. An outside spokesman for Bally said the Chicago-based company expects to emerge from court protection in late August or early September.

According to court papers filed last month, JPMorgan Chase & Co. was to get 50.5% of the common stock of a reorganized company, while Anchorage Advisors LLC, a New York-based hedge fund, was to get 33.7%. The plan ...

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