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Bally again extends solicitation of waivers
New York, July 29 - Bally Total Fitness Holding Corp. has once more extended its solicitation of waivers from noteholders, this time to 5 p.m. ET on July 29 from 5 p.m. ET on July 28.
All other terms remain unchanged.
The solicitation was previously extended on July 27.
Bally announced the consent solicitation on July 13, saying it was seeking a 90-day extension of the waivers from its public noteholders on its delay in filing financial statements, pushing back the deadline to Oct. 31, according to a company news release.
The original waivers expire on July 31.
Bally said at the time that it will not be able to provide its audited financial statements for 2002 to 2004 by July 31 and is asking for an extension of the waivers of reporting covenant defaults from holders of its 10½% senior notes due 2011 and 9 7/8% senior subordinated notes due 2007.
These defaults result from the company's previously announced failure to timely provide its financial statements for the second and third quarters and full year 2004 and the first quarter of 2005 with the Securities and Exchange Commission and deliver the financial statements to the trustee and holders of notes.
If the waivers are not extended, the company will be in default under its indentures after July 31.
After that, payment on the notes could be accelerated after notice and cure periods.
Also, the company's credit facility provides for a cross-default 10 days after delivery of notice under either indenture, which would give the company's lenders the right to accelerate payment.
Also, the company expects a delay in filing its 10-Q report for the quarter ended June 30, which would also be covered by the waiver extension.
Bally is a Chicago-based health club chain.
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