Bally Readies For Bankruptcy

Law360, New York (June 1, 2007, 12:00 AM EDT) -- After months of speculation, Bally Total Fitness Holding Corp. has admitted that it intends to file for Chapter 11 bankruptcy, opting for the move in the face of a heavy debt loan and sinking profits.

On Thursday, the Chicago-based health giant revealed that it will file a prepackaged bankruptcy in July, hoping to emerge from Chapter 11 two months after submitting its petition.

"We are pleased to have achieved such strong support for a consensual restructuring that reduces our debt, reduces our annual cash interest obligations...
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