Bally Cuts Exit Deal To Reduce Debt By Over $660M

Law360, New York (June 15, 2009, 12:00 AM EDT) -- Bally Total Fitness Holding Corp. has reached a multimillion-dollar exit financing package with lenders that will allow it to leave Chapter 11 after being parked in bankruptcy court for more than six months.

In court documents filed Wednesday and Thursday in the U.S. Bankruptcy Court for the Southern District of New York, Bally says lenders have agreed to get behind a restructuring plan that will provide new financing and cut debt by at least $660 million.

The deal will allow Bally to reduce its interest payment...
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