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. Bally expects to emerge from Chapter 11 by the end of September 2007 as a private company.
At a hearing, the court ruled that Bally had met all of the statutory requirements to confirm its plan. It is moving forward with the restructuring arrangements funded by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund L.P.
"The court's confirmation of our plan paves the way for our emergence from Chapter 11 and we look forward to a rejuvenated Bally Total Fitness under Harbinger's leadership," said Don Kornstein, interim chairman and chief restructuring officer of Bally, in a statement. "We will exit bankruptcy as a stronger company, with a capital structure that will enable us to increase our level of investments in our clubs and pursue other initiatives to add value for our members."
Under its proposal, Harbinger would invest approximately $233.6 million in exchange for 100 percent of the common equity of reorganized Bally. In the event the transaction with Harbinger is not consummated, Bally said it can carry out the restructuring set forth in the original plan sponsored by Tennenbaum Capital Partners, Goldman, Sachs & Co. and Anschutz Investment Company.
Dick's board OKs 2-for-1 stock split
The board of directors for Dick's Sporting Goods (NYSE: DKS) has approved a 2-for-1 split of the company's common stock in the form of a dividend. The company plans to give shareholders of record on Sept. 28 one additional share of common stock for each share held and one additional share of Class B stock for each Class B share held. The additional shares are expected to be distributed around Oct. 19.
GSI Commerce closes sale of Accretive Commerce
GSI Commerce (Nasdaq: GSIC) has closed its acquisition of Accretive Commerce, a Huntersville, N.C.-based, e-commerce solutions provider for $97.5 million in cash.
"We are excited to welcome the employees and partners of Accretive Commerce and we look forward to growing the business as one company," said Michael Rubin, GSI chairman and CEO, in a statement.
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