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Gold’s Gym requests court approval to access $20 million DIP facility
By Caroline Salls
Pittsburgh, May 5 – GGI Holdings, LLC (Gold’s Gym) requested court approval to obtain $20 million in debtor-in-possession financing, according to a motion filed Monday with the U.S. Bankruptcy Court for the Northern District of Texas.
The DIP financing will be provided by GGI’s majority owner, TRT Holdings, Inc., or its TRT Debt Funding, LLC affiliate.
The facility is scheduled to mature on Aug. 1, subject to an extension to allow a confirmed plan to take effect.
Interest will accrue at Libor plus 1,000 basis points. The DIP loans will be made with an original issue discount of 2% of the total principal amount.
The lenders have agreed to advance up to $9 million of the financing on an interim basis.
GGI is a Dallas-based operator of physical fitness facilities. The company filed bankruptcy on May 4 under Chapter 11 case number 20-31318.
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