Six Flags Reveals Chapter 11 Restructuring Plan
Posted on Aug 25, 2009 12:07pm PDT
This past Friday, a plan was filed and called for Six Flags creditors to own a majority stake in the company when it emerges from
Chapter 11 bankruptcy protection. Six Flags is a chain of large-scale amusement parks that are located throughout the United States.
Court documents reveal that the banks that once loaned Six Flags money will end up owning 92% of the company's common stock after its Chapter 11 filing. In June, Six Flags sought federal bankruptcy protection from the U.S. Bankruptcy Court in Delaware.
Six Flags' creditors also stand to receive 10% of the new stock options and restricted stock, which could easily total millions of dollars. At this time, the plan is awaiting approval from the court.
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