Six Flags' unsecured creditors file objection to Resilient's motion

By Lisa Kerner

Charlotte, N.C., April 19 - Six Flags Inc.'s official committee of unsecured creditors of Premier International Holdings, Inc. and certain affiliates object to Resilient Capital Management, LLC's April 14 motion for permission to participate in the confirmation hearing, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee said in the filing that "Resilient was given ample opportunity to participate in the confirmation process consistent with the schedule," as set by the court more than four months ago.

Resilient, however, did not file a confirmation objection to the plan to participate in the original confirmation trial.

"Now, at the veritable eleventh hour, Resilient seeks to disrupt the concluding phase of the confirmation process with a newly minted theory on valuation - one that is entirely unsupported by any market indicia of reliability," the filing said.

Last week Resilient notified all holders of the company's Piers and common shares that it intends to participate in Six Flags' plan confirmation hearing in connection with its objection to valuation work, according to a news release.

In its motion, Resilient said Amherst Capital Partners, LLC valued Six Flags at a total enterprise value of $2.679 billion.

At this valuation, the shareholder said holders of the Piers are entitled to a roughly 100% recovery or $300 million, compared to the $2.75 million current market capitalization of the Piers.

Resilient "now seeks to proffer an expert report - [and], presumably, testimony before the court - asserting that the value of the debtors' estates is some $600 to $700 million more than the market-tested valuations presented by experts for the official committee and the ad hoc SFI noteholders committee" and the value implicit in the debtors' fourth modified amended plan of reorganization.

The court has made it "abundantly clear" that it would strictly enforce the deadlines it established and that the consequence of missing a deadline would be the exclusion of evidence, the committee's filing said.

Resilient said previously it is encouraging all Six Flags shareholders to object to the current plan.

The confirmation hearing is scheduled to resume on April 28.

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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