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Wednesday, March 3, 2010

Six Flags Theme Park Management MAY be On the way OUT!

Six Flags Incumbent Management May Be on the Way Out

Incumbent management of Six Flags Inc. evidently will lose their jobs if holding company noteholders succeed in taking over the theme-park operator by winning confirmation of their competing reorganization plan.

In a statement last week, holding company noteholders owning $650 million in bonds said they are in the “final stages of finalizing” debt and equity financing for their plan. The noteholders explained how the bankruptcy judge said that having financing commitments behind a plan at a higher valuation would be a “key factor” in his decision about which plan to approve.

The noteholders’ statement said they have identified a “highly experienced, industry leading management team” to take over once their plan is approved and implemented. The holding company noteholders contend bondholders of the operating companies are trying to take over “at a substantial discount.”

The holding company noteholders also said they voted against the company’s plan. The contested confirmation hearing is scheduled to begin March 8. For a comparison of the company’s plan and the alternative proposed by holding company noteholders,  see the Bloomberg daily bankruptcy report from Dec. 1.

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).

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