24 Hour Fitness Creditors Say Reorg Plan Unfair, Favors Lenders

Bankrupt 24 Hour Fitness Worldwide Inc.'s Chapter 11 plan would unfairly give most of the gym operator’s value to post-bankruptcy lenders, according to the committee of unsecured creditors.

Post-bankruptcy debtor-in-possession lenders are “poised to recover a multiple of the value of their claims,” the committee said Wednesday in a filing with the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 plan"all but ensures” that unsecured creditors will recover nothing, it said.

The chain’s “businesses are far more valuable than the Debtors conclude,” the committee added in its objection to 24 Hour Fitness’ disclosure statement filed with the ...