24 Hour Fitness’ Lenders to Seize Equity Under Bankruptcy Plan

Bankrupt gym operator 24 Hour Fitness Worldwide Inc. proposed in its Chapter 11 plan to reduce its funded debt by about $1.2 billion and hand over all of reorganized company equity to its lenders.

A group of lenders that provided bankruptcy financing—including Sculptor Capital Investments LLC, Monarch Alternative Capital LP, and Cyrus Capital Partners LP—would receive their pro-rata share of 95% of new common equity interests in the reorganized parent company, according to 24 Hour Fitness’ court filings. Second-lien lenders that are owed $690.7 million under a pre-bankruptcy credit facility would get the remaining 5%, which is equivalent to ...