SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
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. 1
Bally Total Fitness Holding Corporation
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
058 73K 10 8
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(CUSIP Number)
Dennis J. Block, Esq.
Cadwalader, Wickersham & Taft LLP
100 Maiden Lane
New York, NY 10038
(212) 504-5555
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
July 9, 2004
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(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).
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 2 of 8
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1 NAME OF REPORTING PERSON
Liberation Investments L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_] (b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
NUMBER OF
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,271,754
EACH
REPORTING ----------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
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10 SHARED DISPOSITIVE POWER
1,271,754
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,271,754
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.74%
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14 TYPE OF REPORTING PERSON (See Instructions)
PN
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 3 of 8
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1 NAME OF REPORTING PERSON
Liberation Investments Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_] (b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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7 SOLE VOTING POWER
0
NUMBER OF
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 674,446
EACH
REPORTING ----------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
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10 SHARED DISPOSITIVE POWER
674,446
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
674,446
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.98%
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14 TYPE OF REPORTING PERSON (See Instructions)
CO
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 4 of 8
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1 NAME OF REPORTING PERSON
Liberation Investment Group LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_] (b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
N/A
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
NUMBER OF
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,946,200
EACH
REPORTING ----------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
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10 SHARED DISPOSITIVE POWER
1,946,200
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,946,200
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.73%
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14 TYPE OF REPORTING PERSON (See Instructions)
OO,IA
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 5 of 8
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1 NAME OF REPORTING PERSON
Emanuel R. Pearlman
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_] (b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (See Instructions)
N/A
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d)
or 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
35,000
NUMBER OF
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 1,946,200
EACH
REPORTING ----------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 35,000
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10 SHARED DISPOSITIVE POWER
1,946,200
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,981,200
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions) [_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.83%
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14 TYPE OF REPORTING PERSON (See Instructions)
IN, HC
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 6 of 8
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INTRODUCTION
This Amendment No. 1 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, relating to shares of common stock, $.01 par value per share, of Bally
Total Fitness Holding Corporation (the "Company").
Items 4, 5 and 7 of the Schedule 13D are amended and supplemented as
follows:
Item 4. Purpose of Transaction.
After discussions with Mr. Pearlman, as representative of the
Reporting Persons, on July 9, 2004, the Company issued a press release
announcing that the Company has agreed to redeem its stockholder rights plan and
the Company said it reinforced its strong commitment to enhance stockholder
value. The Company also announced that the Board will adopt a "poison pill"
policy under which any new poison pill will require prior stockholder approval.
The Company said the independent directors of the Board may act on their own to
reinstate a pill, so long as the Board subsequently submits the pill to a
binding stockholder vote by the later of the Company's next annual meeting or
270 days after the pill is adopted.
In light of this announcement, Liberation Investments, L.P. and
Liberation Investments Ltd. (collectively, "Liberation") have agreed to withdraw
the stockholder proposals set forth in Liberation's letter to the Company dated
May 27, 2004. In addition, Liberation has agreed to terminate its solicitation
of proxies for use at the Company's 2004 Annual Meeting and at such meeting
plans to vote all Bally Common Stock owned by Liberation for the election of the
current nominees for director and will not encourage any person to withhold
votes for such nominees.
The Reporting Persons intend to evaluate, on an ongoing basis, the
Company's financial condition, business, operations and prospects, the market
price for the shares of Common Stock, conditions in the securities markets and
general economic conditions. In particular, the Reporting Persons intend to
monitor and review the Company's redemption of its stockholder rights plan and
the Company's policies with respect thereto.
Subject to the foregoing, the Reporting Persons reserve the right to
communicate with, and make proposals to, the Company's board of directors and
management regarding their investment in the Company and strategies to maximize
shareholder value, contact and consult with other stockholders of the Company
concerning the Company and its prospects, formulate other plans and/or make
proposals, and take such actions with respect to their investment in the Company
as the Reporting Persons may determine to be appropriate.
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 7 of 8
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The Reporting Persons may pursue alternatives to maximize the value
of their investment in the Company. Such alternatives could include, without
limitation, (i) the purchase of additional Common Stock in the open market, in
privately negotiated transactions or otherwise, and (ii) the sale of all or a
portion of the Common Stock now owned or hereafter acquired by them. The
Reporting Persons may also transfer shares to or from a Reporting Person to
another Reporting Person.
The Reporting Persons reserve the right to change their plans or
intentions and to take any and all actions that they may deem appropriate to
maximize the value of their investment in the Company in light of their general
investment policies, market conditions, subsequent developments affecting the
Company and the general business and future prospects of the Company.
Except as set forth above in this Amendment No. 1, the Reporting
Persons do not have any current intention, plan or proposal with respect to: (a)
the acquisition by any person of additional securities of the Company, or the
disposition of securities of the Company; (b) an extraordinary corporate
transaction, such as a merger, reorganization or liquidation, involving the
Company or any of its subsidiaries; (c) a sale or transfer of a material amount
of assets of the Company or any of its subsidiaries; (d) any change in the
present board of directors or management of the Company, including any plans or
proposals to change the number or term of directors or to fill any existing
vacancies on the board; (e) any material change in the present capitalization or
dividend policy of the Company; (f) any other material change in the Company's
business or corporate structure; (g) changes in the Company's charter, bylaws or
instruments corresponding thereto or other actions which may impede the
acquisition of control of the Company by any person; (h) causing a class of
securities of the Company to be delisted from a national securities exchange, if
any, or cease to be authorized to be quoted in an inter-dealer quotation system
of a registered national securities association; (i) a class of equity
securities of the Company becoming eligible for termination of a registration
pursuant to Section 12(g)(4) of the Act; or (j) any action similar to any of
those enumerated above.
Item 5. Interest in Securities of the Issuer.
(1) The responses of the Reporting Persons with respect to Rows 11,
12 and 13 of the cover pages of this Schedule 13D/A that relate to the aggregate
number and percentage of Common Stock are incorporated by reference.
Item 7. Material to be Filed as Exhibits.
Exhibit 5 Letter dated July 9, 2004 from Liberation Investments, L.P. and
Liberation Investments Ltd. to Bally Total Fitness Holding
Corporation
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CUSIP No. 058 73K 10 8 SCHEDULE 13D Page 8 of 8
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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 12, 2004
LIBERATION INVESTMENTS, L.P.
By: Liberation Investment Group LLC, general partner
By: /s/ Emanuel R. Pearlman
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Emanuel R. Pearlman
General Manager
LIBERATION INVESTMENTS LTD.
By: /s/ Emanuel R. Pearlman
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Emanuel R. Pearlman
Director
LIBERATION INVESTMENT GROUP LLC
By: /s/ Emanuel R. Pearlman
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Emanuel R. Pearlman
General Manager
Emanuel R. Pearlman
/s/ Emanuel R. Pearlman
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