Six Flags files Chapter 11 reorganization

Six Flags Inc., the world's second-largest amusement park operator, filed a reorganization plan yesterday to carry out a restructuring negotiated with a majority of lenders under the pre-petition credit agreement before the June 13 Chapter 11 filing.

The plan restructures $2.6 billion in debt and preferred securities while converting $1.8 billion of liabilities into equity.

The holders of $1.13 billion under the pre-petition credit agreement are to end up with 92 percent of the new stock plus a new $600 million term loan.

Unsecured creditors of Six Flags Operations Inc. are to see 7 percent of the new stock. Unsecured creditors of Six Flags Inc., including holders of $1.27 billion in unsecured notes and $287 million in mandatorily redeemable preferred stock, are to have 1 percent of the stock.

Except for the lenders under the credit agreement who are projected to have a full recovery, the explanatory disclosure statement, also filed yesterday, currently has blanks where the various creditor classes will be told what the plan represents in terms of a percentage recovery.

The Chapter 11 petition listed assets of $2.9 billion against debt totaling $3.4 billion, including a $850 million secured term loan and a $243 million revolving credit.

New York-based Six Flags has 20 theme parks, with 18 in the U.S. The parks have 800 rides, including 120 roller coasters.

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