Did you hear?...Keys bankruptcy reorganization plan approved by court despite belated objection by Icon

The U.S. Bankruptcy Court, Northern District of Texas, has approved the amended plan for Keys in its Chapter 11 bankruptcy reorganization case.
Author:
Updated:
Original:

The U.S. Bankruptcy Court, Northern District of Texas, has approved the amended plan for Keys in its Chapter 11 bankruptcy reorganization case.

The first plan was filed July 3 (click here to see a story about that plan and its contents in a July 7, 2008, SNEWS® story.), while an amended plan was filed Aug. 1. The second amended plan was filed for the final hearing on Sept. 11.

"The plan satisfies (the) Bankruptcy Code section," the court wrote in the final approval. "The disclosure statement and the evidence adduced at the confirmation hearing are persuasive and credible; are based on reasonable and sound assumptions; and establish that each holder of an impaired claim or interest either has accepted the plan or will receive or retain under the plan, on account of such claim or Interest, property of a value, as of the effective date, that is not less than the amount that such holder would receive or retain if the debtor were liquidated under Chapter 7 of the Bankruptcy Code on such date."

The court noted, "Accordingly, confirmation of the plan is in the best interests of the debtors' creditors and Interest holders."

In July, the court set Sept. 3 to confirm the amended plan for "reorganized fitness," as the new company would be known since it combined both the Keys Fitness and Keys Backyard cases and companies. According to the court documents, the last day to object to the plan was Aug. 26, on which date Icon as well as two other Keys' creditors filed objections.

The court noted in its approval that three objections to the plan were filed by the deadline of Aug. 26 and two of those were resolved. However, it added, "the remaining objection to the plan and/or the amended plan filed by Icon Health & Fitness is overruled."

In another attempt to stop the reorganization plan's approval, Icon filed on Sept. 3 an "adversary case" requesting the court deny Keys' discharge under the proposed plan since it provides for liquidation of all property and a dissolution by the debtors. On Sept. 10, Icon filed a second objection to confirmation of the amended plan of Keys' joint reorganization.

In that Sept. 10 objection, Icon stated that Keys stopped making its royalty payments to Icon but continued to use its patents. Icon had initiated two suits but prior to their resolution an involuntary Chapter 7 liquidation was filed against Keys in March and the company filed for its own Chapter 11 reorganization in April.

"The Debtors have continued, post-petition, to infringe Icon patents and trademarks, including two additional trademarks owned by Icon that are not the subject of the pending litigation," the Icon objection stated.

Icon in its filing noted Keys had told the court its plan would be modified to accommodate Icon's objections but Icon stated that the modification only addressed a portion of its complaint.

The court wrote, "Icon received adequate notice of, and adequate opportunity to be heard with respect to, the proposed form and content of this order, including all revisions thereto that were proposed after the conclusion of the confirmation hearing. Icon proposed a number of changes to the proposed confirmation order, which are incorporated herein."

The order also states that Icon will be barred from making further claims against Keys that relate to matters that arose on or before the plan's effective date, including claims for infringement of any kind.

Officers of the restructured company will be, per the court document, Miquel Nistal as president and CEO, with directors to be Nistal, Steven C. Jaffe and Charles W. Moore. All other officers have been removed.

Related

Did you hear?... Court sets final hearing to approve Keys bankruptcy reorganization plan

In a hearing before the U.S. Bankruptcy Court, Northern District of Texas, the date for a final hearing to confirm the reorganization plan filed by Keys in July was set for Sept. 3. To read a July 7, 2008, SNEWS® story summarizing the plan and the case, click here. Votes by ...read more

BallyFit_Logo.jpg

Did you hear?...Bankruptcy court approves continued operations by Bally, discusses Hilco employment

In a swarm of filings, objections, motions and approvals, the court in the Ch. 11 bankruptcy reorganization case of Bally Total Fitness stayed busy over the holidays. A motion to approve the employment of Hilco real estate consultants was set on the agenda for a hearing Jan. 7. ...read more

Did you hear?...Court approves sales of Keys Fitness assets; who will get them next?

In a court hearing on Nov. 20, the U.S. Bankruptcy Court, Northern District of Texas, Dallas, has approved the sale of Keys Fitness and Backyard assets and inventory by owners Jacobson Partners. As reported in a Nov. 17 SNEWS® story (click here to read), the Ironman-branded ...read more

Keys Fitness Ch. 11 bankruptcy combined with Keys Backyard bankruptcy case

The court overseeing the Keys Fitness Chapter 11 bankruptcy reorganization case has approved a request to combine the Keys Fitness case with the Keys Backyard filing from late February for joint administration. In addition, since the initial filing on April 14 by Keys Fitness, ...read more

Keys Fitness ownership seeks court approval to sell all assets

Two months after a bankruptcy court approved a Ch. 11 reorganization plan by Keys Fitness ownership -- an approval that was voided a week later on the request of owners -- the private equity ownership group has asked for court approval to sell all Keys' assets at a fraction of ...read more

New Leaf parent's reorganization plan approved by bankruptcy court

Angeion Corporation (NASDAQ: ANGVC) has announced the United States Bankruptcy Court for the District of Minnesota, Third Division, has confirmed the company's Joint Modified Plan of Reorganization, dated Sept. 4, that took effect Oct. 25 that will allow the company to emerge ...read more

Malden Mills Files Reorganization Plan With Courts

Malden Mills made the first significant step to emerge from Ch. 11 protection by filing Aug. 19 a Disclosure Statement for the Joint Plan of Reorganization with the U.S. Bankruptcy Court for the District of Massachusetts. A hearing to consider the relief sought in the ...read more

Fitness financials: Bankruptcy court OKs Bally's Ch. 11 reorganization plan, plus Dick's, GSI Commerce

Bankruptcy court OKs Bally's Ch. 11 reorganization plan On Sept. 17, Bally Total Fitness (Pink Sheets: BFTH) said the U.S. Bankruptcy Court for the Southern District of New York has entered an order confirming the company's amended prepackaged Chapter 11 plan of reorganization. ...read more

TKO: Bankruptcy reorganization plan OK'd by court, schedules return to HFB show

Ten months after filing for Ch. 11 bankruptcy reorganization, TKO Sports Group USA Limited has decided to exhibit in a small space at the Health & Fitness Business Show, Aug. 3-5. The company in the meantime has consolidated facilities and products and laid-off a founder to ...read more