New Chapter 11 Filing – In-Shape Holdings, LLC
On December 16, 2020, In-Shape Holdings, LLC, of Stockton, CA, a health club operator that had operated 65 clubs prior to the Covid-19 pandemic, and two affiliates filed petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case 20-13130). The company reports $50 to $100 million in assets and $100 to $500 million in liabilities. The company has entered into an asset purchase agreement for substantially all of the debtors’ assets with an existing lender and co-investors as stalking horse, for a purchase price of a $45.3 million credit bid of the DIP and prepetition obligations. The stalking horse would assume leases relating to up to 45 clubs. Prepetition first lien lenders would also provide $30.6 million in DIP financing. A link to In-Shape Holdings, LLC’s chapter 11 petition can be found here.
Cole Schotz does not represent the Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtors’ counsel.
Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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