Six Flags Bankruptcy Update

[Coaster Justin]

I can't believe nobody posted this.

Aug. 21 (Bloomberg) -- Six Flags Inc., the bankrupt theme park owner, would be taken over by its lenders under a reorganization proposal filed today.

Lenders would be given 92 percent of the new stock to be issued under the proposal and a $600 million new term loan in exchange for canceling about $1.13 billion in debt, Six Flags said in court papers filed in U.S. Bankruptcy Court in Wilmington, Delaware.

Cutting debt through the reorganization plan will leave the company with “appropriate liquidity and a sustainable capital structure,” New York-based Six Flags said in its so-called disclosure statement, a document written to help creditors decide how to vote on the proposal.

Six Flags owned 20 theme parks and hadn’t posted an annual profit since 1998. It filed for court protection in June along with 36 affiliates.

Should the plan be approved by U.S. Bankruptcy Judge Christopher Sontchi, who will take the vote of creditors into consideration, the lenders would recover between 92 percent and 113 percent of what they are owed, according to court records. The difference in recoveries depends on the value of the stock and the final tally of the company’s pre-bankruptcy debt after lawyers finish challenging the claims.

Noteholders owed $400 million would get 7 percent of the new stock and collect between 8 percent and 12 percent of what they are owed.

Other unsecured creditors owed $1.35 billion would get 1 percent of the stock, which would be worth between 0.4 percent and 0.6 percent of what they are owed.

The lead case is Premier International Holdings Inc., 09- 12019, U.S. Bankruptcy Court, District of Delaware (Wilmington).

http://www.bloomberg.com/apps/news?pid= ... EOYuVZxKXo

[onyxhotel08]

About what I expected

[monsterfan99]

I'm amazed the unsecured holders get anything in this case. I'm also surprised they could not get the new loan below 500 mil. Oh well, works out well for the company.

[Demon_07]

Pretty sure I saw that article in the daily herald, thanks!

[Goku1910]

In English? Please?

[monsterfan99]

^ Huh, it appears to be written in English, unless the driving from FL to Chicago made my mind go crazy.

[SFaddiction84]

This Means that in Filing Bankruptcy, the Creditors to whom Six Flags owes money to have said, fine, they can file, but we want STOCK in the company!

Just Also Remember that During Bankruptcy, Six Flags is still aloud to build and install ANY Rollercoasters already purchased and scheduled!

As for the Rumor of Chang being REMOVED this year and being rehabed in 2010 for a 2011 Great America Debut? This still can happen! Granted Six Flags Can show numbers that A. The Park it is leaving will not LOSE REvenue because of the removal and B. Great America will see an INCREASE in Sales and Attendance Because of the RELOCATION! Bankruptcy Court will let it happen!

Same with ANY RIDE! If Six Flags can show strong numbers that Removal of rides, Rehab of Rides or Re-Location of rides will only HELP the Park, Bankruptcy Court will approve it. However, If The Purchase of Brand New Rides and Attractions might have to wait! This is why they are bringing back the "Ride Rotation Program" Because Bankruptcy court will allow relocations because there Cheaper then NEW Installs and could HELP the park!