Six Flags plans to change distribution for unsecured, loan claimants

By Caroline Salls

Pittsburgh, March 19 - Six Flags, Inc. intends to modify its plan of reorganization to change the proposed distributions to holders of general unsecured claims against Six Flags, Inc. and Six Flags Operations Inc., according to an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, the company's current plan calls for the holders of pre-bankruptcy credit agreement claims against Six Flags Operations and Six Flags Theme Parks Inc. to be paid in full, in cash from the proceeds of an exit term loan and a rights offering to the holders of allowed unsecured claims against Six Flags Operations that voted to accept the plan.

The Six Flags Operations general unsecured creditors include holders of its 12¼% senior notes due 2016. Each accepting Six Flags Operations noteholder would have also had the limited right to participate in the rights offering under the current plan.

Also under the current plan, holders of allowed unsecured claims against Six Flags and Six Flags Operations would have received new common stock in reorganized Six Flags Inc.

Under the proposed plan changes, holders of pre-bankruptcy credit agreement claims and holders of unsecured claims against Six Flags Operations will be paid in full in cash from the proceeds of debt financing and a rights offering to holders of unsecured claims against Six Flags, Inc.

Meanwhile, holders of unsecured claims against Six Flags, Inc. will receive new common stock in the reorganized company and will have the right to participate in the rights offering on terms and conditions yet to be determined.

Six Flags said it still expects holders of preferred income equity redeemable shares and common stock in Six Flags, Inc. to receive no distribution.

The company said it has not finalized the terms of the modified plan and the related debt financing and equity offerings, so there is no guarantee that it will ultimately file the amended plan.

Six Flags, a regional theme park company based in New York, filed for bankruptcy on June 13, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-12019.

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