Town Sports gets court approval to access $15 million of DIP loan

By Sarah Lizee

Olympia, Wash., Oct. 5 – Town Sports International, LLC obtained court approval to access $15 million of a proposed $32 million priming super-priority senior secured debtor-in-possession term loan, according to an interim order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Fitness Recovery Holdings, LLC is the lender.

The facility is set to mature 120 days from the petition date.

Interest will be 10% per year, paid monthly in cash.

The debtors also received approval to use cash collateral, according to the interim order.

Town Sports is a Jupiter, Fla.-based owner and operator of fitness clubs. The company filed bankruptcy on Sept. 14 under Chapter 11 case number 20-12168.

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