Six Flags files amended bankruptcy plan to complete settlement

Updated 4/5/2010 7:29 AM

Theme-park operator Six Flags Inc. filed an amended reorganization plan on April 2 carrying out the settlement announced in bankruptcy court on March 19. The settlement ended a contested confirmation hearing that began March 8.

Six Flags operates Great America in Gurnee.


Under the revised plan, holding company bondholders will buy the new equity for cash. The new plan is financed with $1.02 billion in new first- and second-lien loans, where the former plan had a $650 million first-lien loan. The rights offering now is $505.5 million, rather than $450 million under the original plan. The revolving credit, formerly $150 million, is now $120 million.

Unsecured creditors of the operating company, previously to participate in the rights offering and receive 22.9 percent of the new equity, now are to be paid in full with cash.

The holding company unsecured creditors, previously relegated to 7.3 percent of the new stock, now are to have 9.5 percent of the new stock and the ability to participate in the $505.5 million rights offering.

The holding company bondholders were opposing the old plan, saying bondholders of the operating company would take over "at a substantial discount" to the value of the business.

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Combined with new loans, the cash infusion allows the new play to provide full payment with interest to holders of operating company unsecured creditors, $420 million owing to the operating company bondholders, and $1.1 billion owning to the senior secured lenders.

Existing preferred and common shareholders still receive nothing.

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).