Resilient promises fight on amended Six Flags bankruptcy plan

Approval of the compromise reorganization plan for theme-park operator Six Flags Inc. evidently won't go down without a fight from Resilient Capital Management LLC.

Resilient, the owner of a type of preferred equity known as PIERS, hired Amherst Capital Partners LLC to value reorganized Six Flags. According to a statement from Resilient, Amherst came up with a reorganized enterprise value of $2.68 billion, which Resilient says is enough for full payment on the $300 million in PIERS.

Resilient filed a motion asking for permission from the bankruptcy judge in Delaware to participate in the plan confirmation hearing to begin April 28. Resilient says it couldn't move to intervene until Amherst finished the valuation.

Six Flags originally began a confirmation hearing March 8, facing opposition from holding company bondholders. A compromise was announced in court on March 19, followed by a revised plan filed April 2. The revised plan is scheduled for approval at an April 28 confirmation hearing.

Under the new plan, the holding-company bondholders will buy new equity for cash. To read details on the plan, click here for the April 5 Bloomberg bankruptcy report.

Resilient accuses the holding-company bondholders of wresting "control from the common shareholders by entering into a transaction which benefits management at the expense of the PIERS and common shareholders."

The Six Flags Chapter 11 petition in June 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 filed under Chapter 11 with 20 theme parks, including 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).