Crunch Buffs Up For Sale By Nixing Flabby Contracts

Law360, New York (September 15, 2009, 4:41 PM EDT) -- Bankrupt gym operator AGT Crunch Acquisition LLC has asked to be allowed to reject certain types of gym memberships and other contracts as it prepares to sell Crunch to CH Fitness Investors LLC.

In a motion before the U.S. Bankruptcy Court for the Southern District of New York on Monday, Crunch asked the court to approve the contracts' rejection effective as of the closing date of its agreement with CH Fitness.

CH Fitness has agreed to purchase substantially all of Crunch's assets. Under the agreement, the...
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