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Former Honolulu Club operator exits bankruptcyJun 06, 2013 (The Honolulu Star-Advertiser - McClatchy-Tribune Information Services via COMTEX) -- The former operator of the Honolulu Club, Meridian Sports Clubs California LLC, announced Wednesday that it has emerged from bankruptcy. Meridian vacated the Honolulu Club on Ward Avenue in early May and opened a new facility, the Island Club and Spa, at the Ko'olani condominium at 1177 Queen St. California-based Meridian filed for Chapter 11 bankruptcy reorganization in October. Under the reorganization plan, Meridian exchanged debt for equity with an affiliate of Praesidian Capital, a provider of capital for small and midsized companies. "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," Jason Drattell, Praesidian founder and managing partner, said in a statement. The new financing includes a $7.5 million loan extended in part by Praesidian and a $4.5 million revolving credit facility with the private investment firm that is now the majority owner of the Ko'olani club. Meanwhile, theHonolulu Club reopened on June 1 after a $3 million renovation that included fully renovated locker rooms and all new equipment. The 65,000-square-foot social and fitness club is now under local management, owned by a partnership of Honolulu businessman Dick Gushman and Douglas Emmett, one of the state's largest owners of office buildings. The owner of the upscale Honolulu Club initially hired ex-Seattle Seahawks football player Sam Adams and his company, Oregon Athletic Club, to help operate the facility in the transition to new local management. Meridian earlier estimated that there were about 3,000 Honolulu Club members. In recent months, both sides have been corresponding with members in hopes of transferring them to their facilities. "Our talented local team has been working around the clock to open the Honolulu Club in two weeks so that members can resume their workouts," Gushman said in a news release when the club reopened. ___ (c)2013 The Honolulu Star-Advertiser Visit The Honolulu Star-Advertiser at www.staradvertiser.com Distributed by MCT Information Services |