24 Hour Fitness Gets Lifeline in $250 Million Loan Approval

Bankrupt 24 Hour Fitness Worldwide Inc. won court approval of a $250 million post-bankruptcy loan, allowing the gym chain to maintain operations at least until the new year.

The debtor-in-possession loan, approved Friday by Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware, incorporates a deal 24 Hour Fitness reached with its DIP lender—a group of participating pre-bankruptcy lenders—and a majority of its landlords.

Under the agreement, 24 Hour Fitness will begin paying its rents in full for its open clubs as of July, the gym’s attorney, Ryan Preston Dahl of Weil, Gotshal & Manges ...