Six Flags wins more time to reorganize company

Six Flags Inc. managers won an extension of their exclusive right to reorganize the theme-park operator, over the objection of lower-ranking creditors who want a trustee to oversee the company’s bankruptcy.

U.S. Bankruptcy Judge Christopher Sontchi said today that if the managers fail to win approval of their plan next month at a hearing in Wilmington, Delaware, he is “highly likely ť to end their exclusive reorganization rights on April 5.

Under a plan sponsored by a group of noteholders, lenders owed $1.1 billion would be fully repaid. The so-called SFO noteholders and another group of noteholders would split about 30 percent of the stock in the reorganized company. Six Flags would raise $450 million by selling 70 percent of the stock.

Six Flags, based in New York, filed for bankruptcy in June with plans to cut debt by $1.8 billion.

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