Troubled health club operator Bally Total Fitness Holding Corp. Friday said it is seeking waivers of technical default from some of its bondholders and lenders.
The defaults were triggered by the company’s failure to file its financial statements for the year ended in December, Bally said in a statement.
As a result, the company is seeking waivers from holders of its 10.5-percent senior notes due 2011 and 9.875-percent senior subordinated notes due 2007.
It will also seek a waiver to extend the time for filing its financials for the quarters ending in March and June. The consent solicitation process is expected to begin on or about March 27.
The health club operator said holders of 53 percent of the senior subordinated notes have already consented to the waivers. Those holders include Tennenbaum Capital Partners LLC and affiliates of Pardus Capital Management LLC and Everest Capital Ltd.
Bally said it is also seeking a waiver of the requirement to deliver financials by March 31 from lenders under its $275 million senior secured credit facility.
Bally, which recently restated financial results for 2000 to 2003, in December hired advisers to help explore strategic alternatives.
The New York Post reported earlier this week that British billionaire Richard Branson’s Virgin Group was mulling an acquisition of Bally.