Six Flags Corporate Discussion Thread

P. 119: Six Flags adds 5 parks/waterparks to portfolio
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Postby Bolliger&Mabillard » Wed Nov 04, 2009 10:10 pm

ginzo wrote:It possibly worked in reality, but not enough to offset their losses in other areas.

If it didn't offsett the losses, then it didn't work.
ginzo wrote:I was always skeptical of Shapiro's claims that the recession was great news for Six Flags.

Agreed.
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Postby Serial_Thriller » Thu Nov 05, 2009 11:05 pm

I think Six Flags is starting to pull out all of the stops in order to raise fast cash. I noticed when scrap prices started going up things started to go missing out of the chains many boneyards.

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Postby robbalvey » Mon Nov 30, 2009 11:21 pm

Here's a new article that is quite an interesting read. Could another company end up owning Six Flags?

http://online.wsj.com/article/BT-CO-200 ... 04400.html

Six Flags Inc.'s (SIXFQ) Chapter 11 case has erupted into a duel between two groups of bondholders vying for control of the amusement park operation as it moves to leave bankruptcy protection.

In a release Sunday, senior bondholders owed some $500 million said they had presented Six Flags' board with signed commitments for $420 million in new capital. Combined with debt financing, that's enough to pay off rival bondholders and take over the company, said the group, which is led by Stark Investments. The Stark-led bondholders made their move as Six Flags is poised to exit bankruptcy protection largely the property of bondholders led by Avenue Capital Group of New York.

Six Flags attorney Paul Harner said Sunday the company had "no comment at the moment" on the restructuring proposal from the Stark-led bondholders. He is with Paul Hastings Janofsky & Walker.

This marks the fourth time in less than six months that a group of Six Flags' creditors maneuvered to take charge of the theme-park
operator.

When it filed for Chapter 11 protection in June, Six Flags was aligned with banks led by JPMorgan Chase & Co. (JPM) behind a Chapter 11 scenario that would have made the company largely the property of the bank group.

That touched off a fight with bondholders who would have gotten only a fraction of the revamped Six Flags under the bank-backed exit plan. Additionally, preferred shareholder Resilient Capital Management floated a restructuring proposal that would have left the debt load in place, but chopped interest rates. Resilient's plan wasn't popular with lenders.

Bondholders led by Avenue eventually wooed the company to support a new Chapter 11 plan, one that will put the theme-park company into their hands. Avenue and others involved in raising $450 million to finance Six Flags' bankruptcy-protection exit will get the largest share of the reorganized company under the Chapter 11 plan that has the company's favor now.

The latest restructuring idea comes from a group of bondholders led by Stark, of Milwaukee. The Stark-led bondholders say they can raise the money to pay off the Avenue bondholders, appease the banks, and set themselves up to own Six Flags.

The Stark group also includes CQS Directional Opportunities Master Fund of the Cayman Islands, and Tricadia Capital Management and 1798 Global Partners, both of New York, court documents say.

Six Flags is due in court Friday for a preliminary hearing on the Chapter 11 exit plan it agreed to with the Avenue-led bondholder contingent. The hearing is supposed to set the stage for creditor voting and confirmation, which would allow the company to emerge from bankruptcy protection.

A spokesman for Avenue couldn't be reached Sunday for comment on the rival proposal. The Stark proposal could upset Avenue's hopes of a clear path to the exit from Chapter 11 for Six Flags, a company that saw its fortunes suffer as consumers cut back entertainment spending.

The Stark bondholders are in a class of creditors owed $870 million. Under the original bank-backed Chapter 11 plan, they were offered only 1% of the company. They don't fare much better under the Avenue Capital-backed Chapter 11 plan, the Stark bondholders say. Avenue's restructuring would leave them with only about 5% of the reorganized company.

The Stark-led group is promising payment in full or reinstated loans for the banks, while it's offering the Avenue group of bondholders cash. That leaves all the equity in Six Flags for the Stark-led bondholders, under their proposal, including 81% that would be acquired by bondholders that have committed to raise $420 million in exit financing.
Last edited by jedimaster1227 on Tue Jul 24, 2012 7:50 am.

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Postby jray21 » Tue Dec 01, 2009 12:29 am

^Man there is a lot of battling going on. It will be real interesting to see how it all works out, and who ends up owning it. Lot's of potential changes in the future. Thanks for the update.

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Postby robbalvey » Tue Dec 01, 2009 7:21 pm

Yeah, if the company ends of changing owners AGAIN....could get real interesting....

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Postby Bolliger&Mabillard » Wed Dec 02, 2009 11:28 am

I'm a little unclear of all the financial jargon in the article, but if I understand correctly, is the park's quickest way to solvency changing owners?
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UPDATE 2-Six Flags can craft own reorg plan, judge says

Postby jedimaster1227 » Tue Dec 08, 2009 10:47 pm

http://www.reuters.com/article/idUSN0712801420091207

* Judge: Six Flags makes 'good faith' progress on reorg

* Six Flags can solicit votes for Avenue Capital-led plan

* Bonds due in February fall 1 cent to 21 cents-TR data (Adds bond activity, background, byline)

NEW YORK, Dec 7 (Reuters) - A U.S. judge said on Monday Six Flags Inc (SIXFQ.OB) can keep its exclusive right to file its bankruptcy reorganization plan, overruling objections from a group of noteholders that sought to offer their own plan.

The ruling allows the world's largest regional theme park operator to begin soliciting votes from creditors on a reorganization plan, crafted by a group of lenders headed by hedge fund Avenue Capital.

Six Flags' exclusive period for filing a plan was extended until Dec. 10 and it now has from that date to Feb. 8, 2010 to solicit acceptances for the plan.

A group of lenders known as the SFI noteholders, led by Stark Investments, had opposed the plan, saying it undervalued the company. But Judge Christopher Sontchi, of the U.S. bankruptcy court in Delaware, said Six Flags and the Avenue-led group had made "good faith" progress on their restructuring plan.

"The debtors would be prejudiced by the expense, confusion and possible delay in getting the confirmation if the SFI plan is allowed to go forward," Sontchi said.

Shortly after his ruling, Six Flags' 8.875 percent bonds due in February 2010 fell by around 1 cent to 21 cents on the dollar, according to Thomson Reuters data.

BATTLE IN BANKRUPTCY COURT

New York-based Six Flags filed for Chapter 11 in June with a $2.4 billion debt load amassed as it bought parks and built rides. In June, Chief Executive Mark Shapiro told Reuters that he hoped the company would exit bankruptcy in six months.

Six Flags' initial plan gave the majority of the company's shares to its bank lenders, which sparked an immediate uproar from other creditors.

Avenue offered a new plan, which Six Flags backed in early November. Avenue's plan provides so-called SFO noteholders owed $420 million with 7 percent of the company.

The Stark group, whose notes are worth $870 million, opposed the Avenue plan, which gave them 4.8 pct of the company.

Sontchi said in his ruling Monday he understood the Stark group's claims that they had been left out of the running to propose a plan, but said possible delays would hamper Six Flags' progress in wrenching itself from bankruptcy.

"Chapter 11 cases don't get better with age," Sontchi said.

"Ultimately, the debtor cut a deal with the SFO noteholders and wants to go forward," Sontchi said. "That's significant progress and indicates good faith."

But Sontchi said the Stark group could stage a comeback if the debtor's plan fails to be confirmed.

"If the debtor goes to confirmation and fails ... the court might grant termination of exclusivity to get a second bite at the apple," Sontchi said.

The case is in re: Premier International Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-12019. (Editing by Matthew Lewis and I am too stupid to spell Steel Vengeance so I'll just write SteVe and pretend I'm being cool Orlofsky)


Management at Six Flags' corporate office seems to have earned a sigh of (temporary) relief as they've at least been assured their own rights to reorganize in the way they choose. It seems the note holders didn't win out after all.
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Postby jedimaster1227 » Tue Dec 15, 2009 1:52 pm

http://www.blooloop.com/PressReleases/T ... -plan/1924

Six Flags, the theme-park owner chaired by Washington Redskins owner Daniel M. Snyder, got court permission Friday to finance its exit from bankruptcy using loans and a stock sale if it wins approval of its reorganization proposal.

U.S. Bankruptcy Judge Christopher Sontchi approved the proposed $800 million loan and a $450 million rights offering as well as the company's disclosure statement. Six Flags can now send the restructuring plan to creditors for a vote. A hearing to consider approval of the plan is scheduled for March 8 through March 19.

Six Flags filed for bankruptcy protection in June with plans to cut debt by $1.8 billion. Under a plan drawn up by company managers, lenders owed $1.1 billion would be fully repaid and two noteholder groups would split about 30 percent of the stock in the reorganized company. Six Flags would raise $450 million by selling 70 percent of the stock.

On Wednesday, Sontchi rejected the first versions of the loan and the rights offering, siding with creditors who claimed that bank and breakup fees associated with the proposals were too high.

The same day as that ruling, Six Flags negotiated lower fees with the banks arranging the loan and with noteholders guaranteeing the new stock would be sold through the rights offering. The new breakup fee related to the offering is $11.25 million, down from $22.5 million.

On Friday, lawyers for creditors agreed that the reduced fees are "within the market." The creditors opposed the proposed payment schedule for the fees.

Sontchi wasn't swayed by the creditors' arguments, saying "in the context of this case" the company's proposed fees and the financing "are reasonable."
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Postby jamesdillaman » Tue Dec 15, 2009 2:06 pm

They could always pave magic mountain and open up a giant roller-hockey complex to raise revenue...

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Postby jedimaster1227 » Fri Jan 08, 2010 5:23 pm

http://www.reuters.com/article/idUSTRE60646E20100107

NEW YORK (Reuters) - U.S. theme park operator Six Flags Inc (SIXFQ.OB) could emerge from bankruptcy as soon as March under an $830 million financing deal it is arranging with lenders, the company said in a regulatory filing on Thursday.

DEALS

The company said it would seek court approval of its proposed reorganization plan in U.S. Bankruptcy Court in March.

Six Flags filed for bankruptcy last June as fewer people attended its amusement parks, leaving it struggling with heavy debt.

Six Flags' reorganization plan is supported by a steering committee of its secured creditors and led by investment firm Avenue Capital Management, which would take control of the company under the plan.

But the company's official committee of unsecured creditors opposes the plan saying it undervalues the theme park operator.

A group of junior noteholders led by Stark Investments want to offer their own plan to take control of the company. It would give back more money to certain groups of creditors.

The court hearing on the Avenue-led reorganization plan is expected to last two weeks.

A lawyer for the Stark-led group was not available to comment.

The company had filed for bankruptcy with an original plan that transferred almost all its stock to senior lenders, including JPMorgan Chase & Co (JPM.N) in return for cutting its debt. It threw its support behind the Avenue-led plan in November.

Six Flags said in the filing that it expects its 2009 revenue to be down 10.9 percent from the previous year at $111.1 million.

The company said its exit financing terms would include a $150 million revolving credit facility, a $680 million term loan, and a financing commitment of $150 million from Time Warner Inc (TWX.N). Time Warner characters, such as Bugs Bunny, are featured at the company's theme parks.

Six Flags would also conduct a $450 million rights offering, that would leave Avenue with control of the company. The junior noteholders would get a 7.3 percent equity stake in the reorganized company, under the proposed deal.

Six Flags has said in court documents that it does not believe the Stark-led plan has sufficient capital to fund the company's operations and would result in protracted litigation.

Six Flags' lenders were holding a meeting on Thursday to discuss the financing, according to Reuters Loan Pricing Corporation [ID:nRLP61287a].

The case is In re: Premier International Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-12019.
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