Crunch Says Proposed Plan Only Way To Avoid Ch. 7

Law360, New York (February 9, 2010, 5:23 PM EST) -- Hoping to stave off a possible Chapter 7 filing, AGT Crunch Acquisition LLC is seeking bankruptcy court approval of a disclosure statement for its committee-approved proposed liquidation plan.

The bankrupt fitness club owner and the creditors committee submitted a joint disclosure statement on Monday in the U.S. Bankruptcy Court for the Southern District of New York, saying if the plan were not approved the company would immediately convert its Chapter 11 cases to Chapter 7.

Under the terms of the plan, CH Fitness Investors LLC —...
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