Town Sports receives court approval to sell assets to stalking horse

By Sarah Lizee

Olympia, Wash., Nov. 4 – Town Sports International, LLC obtained court approval to sell substantially all of its assets to stalking horse and winning bidder New TSI Holdings, Inc., according to an order filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the debtors said they didn’t receive any other qualified bids by the Oct. 26 deadline.

Tacit Capital LLC worked with an ad hoc group of the debtors’ pre-petition 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 pre-petition senior secured debt, $1 million payable to general unsecured creditors and $3.19 million to be used only in connection with the wind down.

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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