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Meridian Sports Club Successfully Exits Chapter 11 With New Owners and Financing

June 10, 2013

Pachulski Stang Ziehl & Jones LLP announces that it has successfully guided Meridian Sports Clubs California LLC, which operates fitness clubs in California, Hawaii and Nevada, through a successful chapter 11 reorganization. Meridian exchanged debt for equity held by an affiliate of Praesidian Capital, a leading provider of mezzanine capital for small and mid-sized companies, and an affiliate of another mezzanine lender. The new financing 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 and to have achieved our main objective – the deleveraging of the company so that it has a strong financial structure for the future,” says Jason Drattell, Praesidian founder and managing partner. “On behalf of the entire management team, I want to thank all the employees, vendors, and members whose support has made this successful transition possible.”

Meridian, serving over 15,000 members, recently opened a new club in Honolulu called Island Club and Spa, the most luxurious and sophisticated gym and spa on Oahu, with advanced fitness equipment lines and extensive spa services.

“Reorganizing Meridian for its next stage of growth has been rewarding for all parties involved, including our law firm.  It is always our goal to assist a company restructure, and then realize new heights ” says Jeffrey W. Dulberg, Meridian’s lead bankruptcy counsel.

Pachulski Stang Ziehl & Jones LLP (www.pszjlaw.com), the nation’s leading corporate restructuring boutique, has recently guided Meridian Sports, Solyndra LLC, and American Suzuki Motor Corporation through successful reorganizations.