Tru Grit Fitness’ disclosure statement conditionally approved

By Sarah Lizee

Olympia, Wash., Feb. 14 – Tru Grit Fitness LLC received conditional approval of the disclosure statement for its Chapter 11 plan of reorganization, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Nevada.

The confirmation hearing is scheduled for March 30.

EFP Funding Solutions, LLC holds an allowed claim in the filed amount of $69.72 million.

Under the plan, Tru Grit will exchange 100% of new equity interests in the reorganized debtor in exchange for and satisfaction of $20 million of the EFP Funding allowed claim.

The remainder of the EFP Funding allowed claim that is not exchanged for equity will be bifurcated and reclassified as an allowed class 2 general unsecured under the plan.

Distributions to holders of general unsecured claims in class 2 will be funded through a contribution of $100,000, which will be distributed pro rata among all holders in this class.

The existing equity interests in debtor will be canceled.

Holders of warehouse claims will receive payment of their allowed claims, which will be paid in 12 equal payments with the first payment to be made on or before the 30th business day after the effective date, and subsequent payments to be made on the 15th day of each month thereafter. No interest, fees or expenses amounts will be paid on account of these claims.

Holders of equity interests will not receive any distribution.

Tru Grit is a Las Vegas-based professional fitness equipment company. The company filed bankruptcy on Dec. 7 under Chapter 11 case number 22-14320.

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