Town Sports names stalking horse winning bidder for all assets

By Sarah Lizee

Olympia, Wash., Oct. 27 – Town Sports International, LLC cancelled an Oct. 28 auction for substantially all of its assets and named stalking horse bidder New TSI Holdings, Inc. the winning bidder, according to a notice filed Monday in the U.S. Bankruptcy Court for the District of Delaware.

The debtors said they didn’t receive any other qualified bids by the Oct. 26 deadline.

As previously reported, Tacit Capital LLC worked with an ad hoc group of the debtors’ prepetition term lenders to submit the stalking horse bid, which is a going-concern bid for the debtors’ operations.

The consideration will include the assumption of assumed liabilities, a credit bid for the $80 million outstanding under the prepetition senior secured debt, $1 million payable to general unsecured creditors and $3.19 million to be used only in connection with the wind down.

The sale hearing is set for Nov. 3.

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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