Bankrupt GNC Settles With Creditors, Cures ‘Death Trap’ in Plan

Bankrupt nutrition products retailer GNC Holdings Inc. reached a settlement with its creditors to amend terms of a planned sale to its largest shareholder, China-based Harbin Pharmaceuticals, boosting sale proceeds that would be used to repay debt holders.

The global settlement paves a way for the bankruptcy court to confirm a consensual Chapter 11 plan for the case that has been contentious since it was filed in June. Harbin, the unsecured creditors committee, and ad hoc committees representing various lender groups have agreed to the settlement, submitted Tuesday in the U.S. Bankruptcy Court for the District of Delaware.

The settlement ...