Eckstein Comments on Bally's Emergence from Bankruptcy in Am Law Daily

Corporate Restructuring and Bankruptcy partner Kenneth H. Eckstein was quoted in an Am Law Daily article about the emergence of Kramer Levin client Bally Total Fitness from Chapter 11. Bally's had filed for bankruptcy twice in 17 months. The first time, Eckstein was quoted as saying, Bally's took on a debt total of almost $1 billion as a result of being acquired by private equity firm Harbinger Capital in 2007. The result, said Eckstein, was an overleveraged company with no ability to service the debt. After nearly going under due to the frozen credit markets in late 2008, Bally's was able to get help from bankruptcy court and stay afloat. Eckstein said that with new infusions of capital and the renegotiation of leases, Bally's has emerged from this bankruptcy a healthier, more viable business. P. Bradley O'Neill, Shari Kahn Krouner and Abbe Dienstag were also noted as having been part of the Kramer Levin team that worked on the bankruptcy.