24 Hour Fitness Worldwide announces restructuring support agreement

By Sarah Lizee

Olympia, Wash., Oct. 7 – 24 Hour Fitness Worldwide, Inc. entered into a restructuring support agreement with lenders beneficially holding about 73% of the company’s secured debt and about 65% of its senior unsecured notes on the terms of a comprehensive restructuring plan, according to a press release issued Wednesday.

The financial restructuring will reduce about $1.2 billion of funded debt, provide increased financial flexibility to help navigate through the Covid-19 pandemic and better position 24 Hour Fitness for long-term success, the company said.

Following its June 15 Chapter 11 bankruptcy filing, the company secured about $250 million in new-money debtor-in-possession financing, as previously reported.

Lazard is acting as investment banker, FTI Consulting is acting as restructuring adviser and Weil, Gotshal & Manges LLP is acting as the company’s legal counsel in connection with its Chapter 11 cases.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator. The company filed bankruptcy in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 20-11558.

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