The bankrupt operator of New York Sports Clubs and Lucille Roberts gyms has received court approval to conduct a speedy chapter 11 sale process, positioning the company to sell itself by next month to a group of lenders and a private-equity firm, WSJ Pro Bankruptcy reported. The lenders and Tacit Capital LLC last month agreed to serve as the lead bidder, or stalking horse, to acquire assets of Town Sports International Holdings Inc., valuing their deal at about $85 million, the minimum price for other bidders to beat. Judge Christopher Sontchi of the U.S. Bankruptcy Court in Wilmington, Del., said Friday he would approve the bidding rules that will subject the Tacit-led offer to other bids. “I’m perfectly happy to approve the bid procedures order as modified and as consensual and uncontested,” Judge Sontchi said during a hearing held by phone and video. The deadline to submit qualified bids is Oct. 26, followed by an auction, if necessary. The company is targeting early November to get the sale approved given liquidity concerns, Town Sports lawyer Joshua Altman said.
