Club Ventures' second amended reorganization plan contains few changes

By Jim Witters

Wilmington, Del., Sept. 21 - Club Ventures Investments LLC filed its second joint amended plan of reorganization Tuesday in the U.S. Bankruptcy Court for the Southern District of New York.

The amended plan contains no changes to the treatment of creditors. But it does specify that the plan's effective date will be on or before Oct. 31.

A plan confirmation hearing is scheduled for Sept. 23.

Under the proposed plan of reorganization, treatment of creditors will include:

• Holders of priority tax claims, administrative claims and non-tax priority claims will be paid in full in cash;

• The Bank of America secured claim will be reinstated, provided, however, that the company's deadline for repaying all principal and interest on the Bank of America loan will be extended to Sept. 15, 2012.

Bank of America cannot declare a default or accelerate the loan until that date if the company makes its monthly interest payments;

• The holder of the LBN secured claim will receive LBN notes and reimbursement obligations and new membership interests;

• The holders of the Praesidian secured claim will receive Praesidian notes and new membership interests;

• Holders of other secured claims will be reinstated, be paid in full in cash or receive the collateral securing the claims;

• Member unsecured claims, insured claims and subsidiary debtor interests will be reinstated;

• Convenience claims, which are unsecured claims of $250 or less, will be paid in full in cash;

• Holders of general unsecured claims will receive a share of a general unsecured claim distribution;

• All insured claims will be reinstated;

• Holders of subordinated claims will receive no distribution;

• Interests in subsidiary debtors will be reinstated; and

• Holders of series A and series B preferred interests and class A, class B and class C interests will receive no distribution.

Club Ventures, a New York-based operator of upscale health clubs, filed for bankruptcy on March 2, 2011. Its Chapter 11 case number is 11-10891.

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