-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D38bZk66TZDkMM/Cq0YMsWXw2n2lC1jV9c8Y/i1JXtf6LLRoICy1V6VVK9SS2HFR i1jg4kAWoOdOo3NDw7eH1A== 0000914121-05-001374.txt : 20050719 0000914121-05-001374.hdr.sgml : 20050719 20050719115415 ACCESSION NUMBER: 0000914121-05-001374 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20050719 DATE AS OF CHANGE: 20050719 GROUP MEMBERS: EMANUEL R. PEARLMAN GROUP MEMBERS: LIBERATION INVESTMENTS, L.P. GROUP MEMBERS: LIBERATION INVESTMENTS, LTD. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BALLY TOTAL FITNESS HOLDING CORP CENTRAL INDEX KEY: 0000770944 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEMBERSHIP SPORTS & RECREATION CLUBS [7997] IRS NUMBER: 363228107 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-47769 FILM NUMBER: 05960946 BUSINESS ADDRESS: STREET 1: 8700 WEST BRYN MAWR AVENUE STREET 2: SECOND FLOOR CITY: CHICAGO STATE: IL ZIP: 60631 BUSINESS PHONE: 773-380-3000 MAIL ADDRESS: STREET 1: 8700 WEST BRYN MAWR AVENUE STREET 2: SECOND FLOOR CITY: CHICAGO STATE: IL ZIP: 60631 FORMER COMPANY: FORMER CONFORMED NAME: BALLYS HEALTH & TENNIS CORP DATE OF NAME CHANGE: 19940526 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LIBERATION INVESTMENT GROUP LLC CENTRAL INDEX KEY: 0001259272 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: SC 13D/A MAIL ADDRESS: STREET 1: 11766 WILSHIRE BLVD., STREET 2: SUITE 870 CITY: LOS ANGELES STATE: CA ZIP: 90025 SC 13D/A 1 li714411-13da.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D/A (Rule 13d-10) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) (Amendment No. 8) Bally Total Fitness Holding Corporation - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, no par value $.01 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 058 73K 10 8 - -------------------------------------------------------------------------------- (CUSIP Number) Mr. Emanuel R. Pearlman Liberation Investment Group 11766 Wilshire Blvd. Suite #870 Los Angeles, CA 90025-6538 (310) 479-3434 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) July 18, 2005 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box / /. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 2 of 9 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Liberation Investments, L.P. - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [ ] (See Instructions) (b) [X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 WC - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 0 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 2,662,963 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 0 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 2,662,963 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 2,662,963 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 7.84% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 (See Instructions) PN - -------------------------------------------------------------------------------- SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 3 of 9 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Liberation Investments, Ltd. - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [ ] (See Instructions) (b) [X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 WC - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Cayman Islands - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 0 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 1,436,487 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 0 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 1,436,487 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 1,436,487 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 4.23% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 (See Instructions) CO - -------------------------------------------------------------------------------- SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 4 of 9 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Liberation Investment Group LLC - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [ ] (b) [X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 N/A - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 0 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 4,099,450 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 0 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 4,099,450 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 4,099,450 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 12.06% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 (See Instructions) OO, IA - -------------------------------------------------------------------------------- SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 5 of 9 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Emanuel R. Pearlman - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 2 (a) [ ] (See Instructions) (b) [X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 N/A - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 35,000 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 4,099,450 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 35,000 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 4,099,450 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11 4,134,450 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 12.16% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON 14 (See Instructions) IN, HC - -------------------------------------------------------------------------------- INTRODUCTION This Amendment No. 8 (this "Amendment") relates to the Schedule 13D filed on behalf of (i) Liberation Investments, L.P., a Delaware limited partnership ("LILP"); (ii) Liberation Investments Ltd. ("LILtd"), a private offshore investment corporation; (iii) Liberation Investment Group, LLC ("LIGLLC"), a Delaware limited liability company and general partner of LILP and discretionary investment adviser to LILtd; and (iv) Emanuel R. Pearlman, as General Manager, Chief Investment Officer and majority member of LIGLLC (collectively, the "Reporting Persons"), with the Securities and Exchange Commission on June 8, 2004, as amended by Amendment No. 1 filed on July 13, 2004, Amendment No. 2 filed on August 27, 2004, Amendment No. 3 filed on September 1, 2004, Amendment No. 4 filed on September 10, 2004, Amendment No. 5 filed on December 13, 2004, Amendment No. 6 filed on April 26, 2005 and Amendment No. 7 filed on May 6, 2005 (the "Schedule 13D"), relating to shares of common stock, $.01 par value per share ("Common Stock"), of Bally Total Fitness Holding Corporation (the "Company"). Items 4 and 7 of the Schedule 13D are amended and supplemented as follows: Item 4. Purpose of Transaction. On July 18, 2005, LIGLLC, on behalf of the Reporting Persons, delivered a letter to the Board of Directors of the Company (the "Board"). The letter expressed the Reporting Person's disappointment with the Company's press release, dated July 13, 2005, and management conference call held on the same date, which, among other things, reported that the Company would fail to meet its self-imposed deadline for completing audited financial statements. In addition, the Reporting Persons called for a change in management, including a new chief executive officer, in order to restore investor credibility and move the Company forward. The letter also urged the Board to appoint Mr. Pearlman to the Board to give credibility to the Board's commitments to effect change at the Company and maximize shareholder value. Mr. Pearlman is the General Manager, Chief Investment Officer and majority member of the Reporting Persons, which together are the Company's largest individual shareholder. A copy of the letter is attached hereto as Exhibit 11. Item 7. Material to be Filed as Exhibits The following exhibit is filed is filed with this Amendment: EXHIBIT 11: Letter sent by Liberation Investment Group, LLC to the Board of Directors of Bally Total Fitness Holding Corporation on July 18, 2005. SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 7 of 9 - ---------------------- ------------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: July 19, 2005 LIBERATION INVESTMENTS, L.P. By: Liberation Investment Group, LLC, general partner By: /s/ Emanuel R. Pearlman ------------------------------ Emanuel R. Pearlman General Manager LIBERATION INVESTMENTS LTD. By: /s/ Emanuel R. Pearlman ------------------------------ Emanuel R. Pearlman Director LIBERATION INVESTMENT GROUP, LLC By: /s/ Emanuel R. Pearlman ------------------------------ Emanuel R. Pearlman General Manager Emanuel R. Pearlman /s/ Emanuel R. Pearlman - ------------------------------ EX-11 2 li714411-ex11.txt Exhibit 11 [Letterhead of Liberation Investment Group, LLC] 11766 Wilshire Boulevard, Suite 870 Los Angeles, CA 90025 Tel: 310.479.3434 Fax: 310.479.3363 July 18, 2005 Board of Directors Bally Total Fitness Holding Corp. 8700 West Bryn Mawr - 2nd Floor Chicago, IL 60631 Dear Members of the Board: While trying to work constructively with members of the board and the Company for the last several months, we were surprised and disappointed by the Company's July 13, 2005 press release reporting management's inability to meet generous self-imposed deadlines accepted by the public debtholders for financial reporting. We listened intently to the conference call during which management tried to explain the Company's performance, and felt that many questions were left unanswered and others were answered insufficiently. In our estimation, last week's announcements are further evidence that Bally's management team continues to flounder in its efforts to set the Company on a path to maximize shareholder value, and as a result, we believe the capital markets have now lost any and all confidence in current management. The leadership of any company has to be accountable for a company's performance, and the leadership of this Company must now stand up and take responsibility for the performance of Bally. Our current CEO has been at the helm for over 2 1/2 years and was the COO of the Company for approximately 18 months prior thereto. We believe that Bally Total Fitness desperately needs new leadership at this time in order to restore investor credibility and move the Company forward. Therefore, in the strongest terms possible we urge that the board do what is necessary and immediately commence a search for a new Chief Executive Officer. In addition, in order to give credibility to the board's commitments to effect change at the Company and maximize shareholder value we request that the board appoint Manny Pearlman as a member. Mr. Pearlman represents the Company's single largest shareholder. In addition to his capital markets expertise, Mr. Pearlman has a strong familiarity with and knows and understands the Company and the industry as a whole. He is also the managing member of our Funds, which own in excess of 12% of the Company's outstanding shares. Our stock purchases are in excess of 90 times as much as the purchases of all the members of the board combined. SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 9 of 9 - ---------------------- ------------------- Needless to say, Liberation Investments has a strong interest in seeing the Company return to health and grow. Through a significantly depressed stock price, the market has been sending a clear, strong message for some time now that Bally is not heading in the right direction. Last week's announcements only serve to confirm this perception of Bally. We believe that the majority of Bally's stakeholders concur with our views regarding the need to change leadership at the Company, as we have heard from many stockholders and bondholders that they have lost confidence in the existing senior management. This letter and our views reflect solely our desire to see Bally maximize value for all its stockholders, a goal which we believe can only be achieved with new leadership. We would be happy to meet with the board to discuss our views as we believe it is the Board's fiduciary responsibility to act now. Very truly yours, /s/ Emanuel R. Pearlman /s/ Gregg Frankel - -------------------------- ------------------------------ Emanuel R. Pearlman Gregg Frankel Chairman and CEO President -----END PRIVACY-ENHANCED MESSAGE-----