In our alert earlier this morning, we said that today was D-day for Bally Total Fitness (BFT) , and that failure to obtain consent for another extension from debtholders would lead to an imminent default of its outstanding debt. We misspoke and want to set the record straight for readers to make a more-informed investment decision.
What we should have said is that today is the end of the recently extended consent period granted by debtholders. The company still has until Aug. 31 to file its financial statements or receive another extension from bondholders.
If Bally doesn't file financial statements by Aug. 31, and isn't granted a waiver from its bondholders at this time, the company would face immediate payment of its debt obligations, which could land the company in bankruptcy.
We apologize for any confusion our original alert may have caused.
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