Six Flags has bowed to pressure from hedge fund Avenue Capital Management and backed down from a plan to would effectively hand the theme-park company over to its senior lenders.
The company filed for bankruptcy over the summer, proceeding to trot out its creepy old man mascot in an effort to drum up business. That reorganization plan would have given almost all of its stock to senior lenders, who would in turn forgive its debt.
But Avenue’s Marc Lasry wasn’t having any of it, since it would leave his firm and other unsecured creditors with practically nothing.
The new plan, which was filed with the court on Saturday, is based on proposals by the Avenue Capital group of bondholders and includes selling $450 million in new stock to increase the money available for creditors….
Holders of one class of unsecured bonds with claims of $420 million now stand to get up to 47.1 percent of the company under the new plan. Six Flags originally proposed giving them 7 percent.
Another class of unsecured bondholders with claims of $1.3 billion now stand to get as much as 4.8 percent of the company, compared to the original plan that offered 1 percent.
Six Flags credited the “stabilization and loosening” of the credit markets for the new bankruptcy plan.
Six Flags agrees to Avenue Capital bankruptcy plan [Reuters]
too first, didn’t second
this story blows jon
Designer jeans, and a hand full of dough (Yeah)
Bottle of the Jos©, pass me some mo’
I got, mo’ cars, mo’ cars, mo’ clothes, mo’ clothes
Mo’ money means mo’ dough to blow (Bloooowwww)
Mo’ money means mo’ dough to blow (Bloooowwww)
Mo’ money means mo’ dough fo’ blow
@2
See that’s the thing–now that they’ve hired Jon and the “non-Bess” articles are actually readible, we finally realize that the stories really aren’t about anything…
Boooooriiinnggggggg.
Six Flags business model is that of a babysitter. Baby sitting expenses are some of the first to go in hard times.
I credit the “loosening” of entertainment standards for the publishing of this story.
SHAZANUS!
Jesus man, i thought Greg was terrible. Are you f’ing kidding me with this Shazar jagoff? Don’t tell me you canned Greg for this guy.
Shazbot, wtf? It was starting to go so well for you…
Creditors can S my D.
-Barry O
Posts that suck
Tag should have been Monday Morning Post
Who let Uncle Junior out of the nut house?
Another Dan Snyder / Shazzam! Production
Jon -
You hairy anus. Go to school and learn how to write. You loser.
Hey. This is fun!!
Miss you guys.
Greg
b7924e I really liked your blog article.Really looking forward to read more. Much obliged.