firstly muscles dont become fats.
what happens is when you exercise, you build muscles and raise your overall metabolism rate. and what you eat during this period is mostly burned off due to the higher metabolism and greater muscle mass.
if you stop exercise, your metabolism will drop very soon. if you continue to eat the regular portion like before, you will start to put on weight cos the extras are not burned away.
in short,
when input < ouptut, you will lose weight(referring to energy transfer)
when input >output, you put on
when inout=output, you maintain your wt.
Surge is right on all counts.

you lose your muscles when you starve - no muscles = no definition = flabby
what you should do is eat less, but not to the extent of starving yourself, and exercise
the body is an efficient machine - muscles use up more energy than fats, so when you starve yourself, the first to go would be your muscles
that said, if you just starve eventually yoru fats will go too, just that you'll look like an african
Line in BOLD is extremely important to note.
I wish to cycle. But my mum's bans me from cycling. She says its dangerous. My house used to have 5 bikes(Pinarello Dogma, Eddy Mercx, Airborne titanium, fondriest and cannodale)
It matters not the brand/make. If it matters, then get a Japanese or China made one, then maybe you would not get knocked down.
If you are clumsy, an European or Asian brand will not ease that problem.
To cut down body fats you first have to have muscle that help you burn away the calories you eat. Everybody needs a certain amount to complete his/her day. If you eat too much, you get fat, too little, you have no energy. Simple.
If you want to loose weight without moving, see a magician.