Crunch Creditors Blast Proposed $40M Asset Sale

Law360, New York (August 5, 2009, 12:49 PM EDT) -- With AGT Crunch Acquisition LLC poised to sell its assets to the fitness club operator’s senior secured lenders, unsecured creditors have spoken out against the $40 million credit deal, claiming the sale improperly includes avoidance actions potentially worth more than $17 million.

The official committee of unsecured creditors lodged an objection Tuesday in the U.S. Bankruptcy Court for the Southern District of New York, contending the asset purchase agreement Crunch inked with CH Fitness Investors LLC incorrectly counts among those assets claims to recover millions dispensed...
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