YouFit Can Tap All of $32 Million Bankruptcy Loan Before Auction

Bankrupt fitness chain YouFit Health Clubs LLC got full access to the remainder of a $32 million bankruptcy loan after resolving other creditors’ objections to the financing.

The debtor-in-possession loan, from a group of pre-petition lenders including Birch Grove Capital LP and Goldman Sachs Group Inc., will allow the Florida-based gym to keep marketing itself for sale at a bankruptcy auction slated for Dec. 21.

Bankruptcy Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware approved the financing at a hearing Friday.

YouFit filed for bankruptcy Nov. 9 with a tentative deal to sell itself ...