24 Hour Fitness Approved to Seek Votes on Reorganization Plan

Bankrupt gym operator 24 Hour Fitness Worldwide Inc. won court permission to solicit votes for its reorganization plan after reaching an agreement with unsecured creditors to provide them a better return than originally proposed.

Judge Karen B. Owens approved the gym operator’s disclosure statement Monday after the committee of unsecured creditors withdrew its objection as part of the settlement. “This case screamed for a business solution,” she said at a hearing at the U.S. Bankruptcy Court for the District of Delaware.

Under the amended plan, filed Monday, unsecured creditors with claims of less than $400,000 would share from a ...