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24 Hour Fitness Rent Deferral OK’d Over Landlord Outcry

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > 24 Hour Fitness Rent Deferral OK’d Over Landlord Outcry

24 Hour Fitness Rent Deferral OK’d Over Landlord Outcry

Law360 (July 1, 2020, 10:21 PM EDT) — A Delaware judge on Wednesday gave her nod for gym chain 24 Hour Fitness Worldwide Inc. to defer an estimated roughly $65 million in rent payments, despite strong objection from multiple landlords, as it moves forward with Chapter 11 plans to restructure its $1.4 billion in debt.

During a hearing held virtually, U.S. Bankruptcy Judge Karen B. Owens said she empathized with the landlords’ plight, as rent has gone unpaid for months amid closures caused by the COVID-19 outbreak, but agreed with the debtors that they must be cautious moving forward as liquidity constraints and uncertainty related to the public health…

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