Bally offers management bonuses as incentive to exit bankruptcy

By Caroline Salls

Pittsburgh, June 1 - Bally Total Fitness Holding Corp.'s board of directors approved a management incentive plan under which some of its executive officers will receive a cash incentive award for successful consummation of the company's proposed pre-packaged plan of reorganization by Sept. 30, according to an 8-K filed with the Securities and Exchange Commission.

The officers covered under the incentive plan include chief restructuring officer Don R. Kornstein; service vice president, secretary and general counsel Marc Bassewitz; and senior vice president and chief operating officer John Wildman.

Under the incentive plan, the board set the maximum value of Kornstein's bonus at $2.1 million; Bassewitz's at $375,000; and Wildman's at $159,375, with reductions based on the number of months after the target date before the restructuring plan becomes effective.

If the plan of reorganization does not become effective within eight months of the target date, Kornstein will no longer be eligible to receive an incentive bonus.

If the plan becomes effective after more than five months after the target date, Bassewitz will receive a $131,250 bonus without further reduction.

If the plan becomes effective after more than five months after the target date, Wildman will receive a $55,781 bonus without further reduction.

The pre-packaged Chapter 11 bankruptcy filing is expected to occur on July 14.

Bally is a Chicago-based fitness center operator.

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