TFE misses bankruptcy filing deadlines, Egbert bidding to buy assets

The Fitness Experience has missed its deadline to file required statements and schedules as required by the bankruptcy code.
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The Fitness Experience has missed its deadline to file required statements and schedules as required by the bankruptcy code.

A hearing was set for Feb. 18 "to compel filing of schedules" and to designate a responsible officer, per a request filed with the U.S. Bankruptcy Court, Northern District of Illinois, Chicago, by the court-appointed trustee. In the Feb. 10 filing, interim trustee Brenda Porter Helms stated that the deadline of Feb. 5 had been missed and no request for extensions has been received, leaving her unable to perform her duties. The Feb. 18 hearing will be at the DuPage Courthouse, 505 N. County Farm Road, Room 2000, Wheaton, Ill.

The court document has requested that U.S. Bankruptcy Court Judge John H. Squires, who is hearing TFE's case, to enter an order that Doug Pearson, who executed the original filing, be designated as responsible and that Pearson be required to file all documents within 14 days of an order.

Meanwhile, a trustee's sale is pending, with a tentative date set for Feb. 23, at 2 p.m. at 3400 W. Lawrence Ave., Chicago. In that filing, it is noted the trustee has received an irrevocable offer from Scott Egbert's Chicago Home Fitness to purchase all sale assets. Egbert, who has been granted bid protection of $150,000 and a breakup fee of $75,000, has offered to pay 75 percent of TFE's cost of the purchased inventory in Illinois and Michigan, and $10,000 for the assignment of nine of the leases in Illinois, Michigan and Wisconsin, which would include telephone numbers.

Any other bidder will be required to post a $150,000 deposit on or before Feb. 28. Trustee Helms can be contacted at 773-463-6427.

A creditors' meeting is still set for March 1. For additional background, see SNEWS® stories -- "The Fitness Experience bankruptcy case continues" (Feb. 4) and "Financial woes force The Fitness Experience into Ch. 7 bankruptcy liquidation" (Jan. 24).

SNEWS® View: Now everybody knows why no lists of creditors and any other backup had yet come available -- because TFE hadn't met its mandated duties per a Ch. 7 filing. At this point, it could be the end of February or early March if the court is forced to wait on a response to its ruling.

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