Meridian Sports Clubs Exits Chapter 11 With New OwnersThursday, June 6, 2013
Meridian Sports Clubs California LLC, which operates fitness clubs in three states, has exited Chapter 11 reorganization. An affiliate of Praesidian Capital in New York is the new owner.
The North Hills fitness chain filed for bankruptcy in October. Praesidian, a provider of mezzanine capital for small and mid-sized companies, became the owner under a debt-for-equity swap involving Praesidian and the affiliate of a second, unnamed mezzanine lender.
Meridian, which also operates under the name Bodies in Motion, has 14 clubs in California, Hawaii and Nevada. The reorganization includes a $7.5 million term loan, extended in part by Praesidian, and a $4.5 million revolving credit facility with Praesidian.
“We are pleased to have completed this process in less than eight months,” Praesidian founder and managing partner Jason Drattell said in a statement late Wednesday.