Six Flags noteholder group asks court to terminate exclusivity

By Caroline Salls

Pittsburgh, Dec. 1 - Six Flags, Inc.'s informal committee of senior noteholders has asked the U.S. Bankruptcy Court for the District of Delaware to terminate the company's exclusive right to file and solicit votes on a plan of reorganization, according to a Monday court filing.

As previously reported, the noteholders' committee has submitted an alternative reorganization proposal to the company's board of directors.

The committee said Six Flags' exclusivity should be terminated to allow it to file the noteholder plan with the court.

On Monday, the noteholders said their plan would provide higher recoveries to Six Flags' creditors than the company's plan.

Specifically, the noteholders said the company's plan "unfairly provides preferential treatment to holders of a series of 12¼% notes issued by Six Flags Operations to the detriment of the SFI noteholders."

The noteholders said their plan:

• Pays lenders in full either with cash or through the reinstatement of their debt;

• Pays Six Flags Operations noteholders in full with cash as opposed to receiving common stock and the ability to participate in a rights offering; and

• Allows Six Flags' noteholders about 19% of the new common stock in the reorganized company and rights to participate in a convertible preferred stock offering to purchase as much as 81% of the new common stock.

In contrast, the noteholders said the company's plan gives Six Flags noteholders 5% of the new common stock.

Six Flags, a regional theme park company based in New York, filed for bankruptcy on June 13 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-12019.

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