YouFit statement OK’d on interim basis; combined hearing April 22

By Sarah Lizee

Olympia, Wash., March 4 – YouFit Health Clubs, LLC received interim approval of the disclosure statement for its Chapter 11 plan of liquidation, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for April 22.

The plan implements a settlement between the debtors, YF FC Acquisition, LLC, which is an acquisition vehicle created by the company’s debtor-in-possession lenders, and the official committee of unsecured creditors, as previously reported.

Under the settlement, the committee agreed to support the sale to YF FC, and the lenders agreed that their claims are no more than $23.5 million. The lenders agreed to increase to $85 million the total amount of lender claims that the buyer would credit bid or assume in connection with the sale.

A liquidating trustee will marshal the remaining assets of the debtors’ estates, including prosecution and recovery of the liquidating trust claims, review the claims and make distributions from the remaining assets of the estates to holders of certain allowed claims.

Under the plan, holders of other priority claims will receive payment in full in cash.

Holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of pre-petition lender claims will receive their pro rata share of the class 3 liquidating trust interests.

Holders of general unsecured claims will receive their pro rata share of the class 4 liquidating trust interests.

Subordinated claims and interests in the debtors will be canceled with no distribution.

Holders of intercompany claims will not receive any distribution either.

YouFit is a gym chain with headquarters in Deerfield Beach, Fla. The company filed Chapter 11 bankruptcy on Nov. 9 under case number 20-12841.

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