Bally files for bankruptcy again, up for sale

[abz]

NEW YORK (Reuters) - Bally Total Fitness Holding Corp, which operates 347 health clubs serving more than 3.1 million customers, filed for bankruptcy protection for the second time in 17 months, and put itself up for sale.

The Chicago-based company and more than 40 affiliates filed for Chapter 11 protection with the U.S. bankruptcy court in Manhattan on Wednesday. Bally said it has more than $1 billion of both assets and debts, and in excess of 100,000 creditors.

Chief Executive Michael Sheehan in a statement said, "The burden of Bally's long-term indebtedness, coupled with the lack of refinancing options in today's constrained credit markets," left no alternative other than a bankruptcy filing, despite "marked improvement" in Bally's operating results.

Bally first filed for bankruptcy protection on July 31, 2007, and emerged two months later after receiving $233.6 million from hedge fund Harbinger Capital Partners. It later defaulted under a credit agreement it obtained when it emerged, according to a resolution adopted by Bally's board.

The company said on Wednesday it has received "strong" interest from prospective purchasers and is in "active and advanced" talks with some lenders on an agreement to buy its assets. It said if it negotiates such an agreement, lenders would provide it with financing to conduct day-to-day operations.

Bally said it can reorganize on its own if it is unable to arrange a sale, and that the bankruptcy process should allow it to significantly reduce debt and streamline operations.

The banking units of U.S. Bancorp (USB.N: Quote, Profile, Research, Stock Buzz) and HSBC Holdings Plc (HSBA.L: Quote, Profile, Research, Stock Buzz) are Bally's largest unsecured creditors, with respective claims of $247.3 million and $231.3 million, according to the bankruptcy petition.

Bally retained Houlihan Lokey Howard & Zukin and the law firm Kramer Levin Naftalis & Frankel LLP as its advisers. Harbinger was not immediately available for comment.

[Wiggs]

Double FAIL

[240 is Back]

"The recession is all in our heads".  - Phil Gramm, Mccain's top economic advisor.

[divcom]

NEW YORK (Reuters) - Bally Total Fitness Holding Corp, which operates 347 health clubs serving more than 3.1 million customers, filed for bankruptcy protection for the second time in 17 months, and put itself up for sale.

The Chicago-based company and more than 40 affiliates filed for Chapter 11 protection with the U.S. bankruptcy court in Manhattan on Wednesday. Bally said it has more than $1 billion of both assets and debts, and in excess of 100,000 creditors.

Chief Executive Michael Sheehan in a statement said, "The burden of Bally's long-term indebtedness, coupled with the lack of refinancing options in today's constrained credit markets," left no alternative other than a bankruptcy filing, despite "marked improvement" in Bally's operating results.

Bally first filed for bankruptcy protection on July 31, 2007, and emerged two months later after receiving $233.6 million from hedge fund Harbinger Capital Partners. It later defaulted under a credit agreement it obtained when it emerged, according to a resolution adopted by Bally's board.

The company said on Wednesday it has received "strong" interest from prospective purchasers and is in "active and advanced" talks with some lenders on an agreement to buy its assets. It said if it negotiates such an agreement, lenders would provide it with financing to conduct day-to-day operations.

Bally said it can reorganize on its own if it is unable to arrange a sale, and that the bankruptcy process should allow it to significantly reduce debt and streamline operations.

The banking units of U.S. Bancorp (USB.N: Quote, Profile, Research, Stock Buzz) and HSBC Holdings Plc (HSBA.L: Quote, Profile, Research, Stock Buzz) are Bally's largest unsecured creditors, with respective claims of $247.3 million and $231.3 million, according to the bankruptcy petition.

Bally retained Houlihan Lokey Howard & Zukin and the law firm Kramer Levin Naftalis & Frankel LLP as its advisers. Harbinger was not immediately available for comment.

the partners that called that funding are history.  how you gonna stay in biz when you make members pay the same as 24hr fitness but they can only use the gym 3 days  a week.  same setup should have the same overall model.

[The Coach]

"The recession is all in our heads".  - Phil Gramm, Mccain's top economic advisor.

Has nothing to do with it.


Bally first filed for bankruptcy protection on July 31, 2007, and emerged two months later after receiving $233.6 million from hedge fund Harbinger Capital Partners. It later defaulted under a credit agreement it obtained when it emerged, according to a resolution adopted by Bally's board.



But unlike the "Big three", they have smarts to file for protection forcing them to reorganize instead of go begging for money again.

[grab an umbrella]

how in the hell does a company like bally fail twice?

[240 is Back]

But unlike the "Big three", they have smarts to file for protection forcing them to reorganize instead of go begging for money again.

CEOs of the Big 3 are selfish bastards trying to extort 34 billion to pay off their richest pension plans, the exact ones that'll get scissored if they declare bankruptcy. 

If we give them the money (and we will) they'll be back in 6 weeks asking for $60 billion with another sob story.

[The Coach]

CEOs of the Big 3 are selfish bastards trying to extort 34 billion to pay off their richest pension plans, the exact ones that'll get scissored if they declare bankruptcy. 

If we give them the money (and we will) they'll be back in 6 weeks asking for $60 billion with another sob story.

Yep.

[grab an umbrella]

I think we should all go and buy an american made car

america

f
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y
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a
h

[The Coach]

I think we should all go and buy an american made car

america

f
u
c
k

y
e
a
h

I disagree, these people have proven they cannot run a business. People are saying "who would by a car from company who has filed for bankruptcy?" well, I guess the same question could be asked "who would by a car from a company who can't run a business, asking for money all the time"? That tells me they would be on the brink of failure at any givin moment. My days of buying american are pretty much over.

[240 is Back]

I disagree, these people have proven they cannot run a business. People are saying "who would by a car from company who has filed for bankruptcy?" well, I guess the same question could be asked "who would by a car from a company who can't run a business, asking for money all the time"? That tells me they would be on the brink of failure at any givin moment. My days of buying american are pretty much over.

I've always bought American.  Dodge, Gm, Olds... as far back as I can remember.

Will my next car be domestic, knowing that GM bankruptcy or failing means my warranty might be void, or parts might not be available?  Yikes.

[Captain Equipoise]

Bally is one of the worst managed corporations I've ever seen in my life, my friend used to manage one of their clubs, he said that company is a 'clusterfuck' horrible infrastructure, they had 3 people on board for the job of 1, gross overspending. I remember when they were going through their first chapter 11 trip, at the same time they were opening up a new 14 million $ superclub. Retarded.

[Ron]

With a bankruptcy in our industry, it is going to affect the unsecured creditors who supplied them with drinks, bars and supplements.  Not good.

[Option D]

With a bankruptcy in our industry, it is going to affect the unsecured creditors who supplied them with drinks, bars and supplements.  Not good.

RON ..You should buy Ballys..you have the money.,..

[The_Punisher]

Fuck ballys, I hope they never recover

[The True Adonis]

"The recession is all in our heads".  - Phil Gramm, Mccain's top economic advisor.

I do agree with that statement to some degree.  Humans fall victim to self-fulfilling prophecies even when the evidence to do so suggests otherwise. 

[Megalodon]

Hopefully the government will intervene via bailout. The world economy is too strongly tied into the gym business.

[The True Adonis]

Cassius:
"The fault, dear Brutus, is not in our stars,
But in ourselves, that we are underlings."
Julius Caesar (I, ii, 140-141)

The real problem with automakers is not the automakers at all.  It is the people. The people are dumb enough to live on credit which the automakers have come to realize, so they in turn can charge egregious amounts for an auto that costs a fraction of the realized and inflated cost.  They know that they will get their money as there are plenty of people duped into making inflated payments of a buy now, pay later society.

Little wonder that a brand new Dodge at 40,000 grand becomes an 8,000 dollar Dodge in 4 years, yet people would rather pay the unrealized cost in monthly payments. 

Blame the people for being ignorant.  The carmakers are just serving the mindless masses.

[Megalodon]

Cassius:
"The fault, dear Brutus, is not in our stars,
But in ourselves, that we are underlings."
Julius Caesar (I, ii, 140-141)

The real problem with automakers is not the automakers at all.  It is the people. The people are dumb enough to live on credit which the automakers have come to realize, so they in turn can charge egregious amounts for an auto that costs a fraction of the realized and inflated cost.  They know that they will get their money as there are plenty of people duped into making inflated payments of a buy now, pay later society.

Little wonder that a brand new Jaguar at 70,000 grand becomes a 10,000 dollar Jaguar in 5 years, yet people would rather pay the unrealized cost in monthly payments.

Blame the people for being ignorant.  The carmakers are just serving the mindless masses.

Japanese carmakers serve the same 'mindless masses' and they did okay. The US carmakers are the ones imposing on others by begging for money.

[The True Adonis]

I disagree, these people have proven they cannot run a business. People are saying "who would by a car from company who has filed for bankruptcy?" well, I guess the same question could be asked "who would by a car from a company who can't run a business, asking for money all the time"? That tells me they would be on the brink of failure at any givin moment. My days of buying american are pretty much over.

Car companies go bankrupt all the time with no real effect to the product at all.  Ford has bought and lost Jaguar.  Mercedes lost Chrysler. BMW gained Range Rover.  Rolls-Royce is owned by BMW, VW owns Bentley.....and so on.


It is ignorant to say don`t buy something because of bankruptcy.

[dr.chimps]

I do agree with that statement to some degree.  Humans fall victim to self-fulfilling prophecies even when the evidence to do so suggests otherwise. 

So True. Put Charles Mackay's 'Extraordinary Popular Delusions and the Madness of Crowds' (1841) on your reading list. Looks at the Dutch Tulip mania, among other things. It's a classic.

[The True Adonis]

Automobiles are nothing more than perceived value.  I have collected cars in the past and its all based on speculation.  There is no definite value to these thing at all.


The idiots who buy new seem to think they are getting their money`s worth in value when they are simply buying a bloated dream hinged on perceived value so they can in turn fulfill the buy now, pay later lifestyle.

If you buy a Brand New Ferrari today versus the same Ferrari with 1200 miles on it in 7 years, you will save over 100,000 dollars.  It is the same car with only 1200 miles.  The value of the car is the same, but the perceived value is not.

[Hereford]

Automobiles are nothing more than perceived value.  I have collected cars in the past and its all based on speculation.  There is no definite value to these thing at all.


The idiots who buy new seem to think they are getting their money`s worth in value when they are simply buying a bloated dream hinged on perceived value so they can in turn fulfill the buy now, pay later lifestyle.

If you buy a Brand New Ferrari today versus the same Ferrari with 1200 miles on it in 7 years, you will save over 100,000 dollars.  It is the same car with only 1200 miles.  The value of the car is the same, but the perceived value is not.

An excellent post.

[onlyme]

Automobiles are nothing more than perceived value.  I have collected cars in the past and its all based on speculation.  There is no definite value to these thing at all.


The idiots who buy new seem to think they are getting their money`s worth in value when they are simply buying a bloated dream hinged on perceived value so they can in turn fulfill the buy now, pay later lifestyle.

If you buy a Brand New Ferrari today versus the same Ferrari with 1200 miles on it in 7 years, you will save over 100,000 dollars.  It is the same car with only 1200 miles.  The value of the car is the same, but the perceived value is not.

Why have a Ferrari for 7 years and only drive it 1200 miles.  My friend bought an old Ferrari Daytona a few years ago for $180,000 I think he said.  That car new probably wasn't much more than $30,000 or so.  Not sure.  Collecting cars are done for one of two reason or both.  You like collecting cars and/or you collect cars as an investment.  My parents bought a 76 Triumph TR6 brand new with 10 miles on it from Larry Reed in LA the last year they were made.  This was back around 1978.  It was in his warehouse in LA.  My parents trailered it up to our cabin in Running Springs and barely drove it.  In 1985 or so my dad sold it for more than $25,000 and less than 3000 miles on it easy.  I think they bought it for $8,000 or $10,000.  They bought it strictly for investment purposes and to drive around the mountains under the sun and clean air.  IN most cases autos are a bad investment but in some cases they can be very good ones and very profitable.

[bigdumbbell]

I disagree, these people have proven they cannot run a business. People are saying "who would by a car from company who has filed for bankruptcy?" well, I guess the same question could be asked "who would by a car from a company who can't run a business, asking for money all the time"? That tells me they would be on the brink of failure at any givin moment. My days of buying american are pretty much over.

my last american car was a 76 jeep grand wagoneer white w/quadratrac 4WD, automatic transmission and simulated woody look.