Six Flags Corporate Discussion Thread

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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby jedimaster1227 » Wed Apr 28, 2010 8:52 am

http://abcnews.go.com/Business/wireStory?id=10498517

Bondholders who have been fighting over control of Six Flags have agreed on a revised Chapter 11 reorganization plan for the theme park operator. Under the agreement announced Wednesday, holders of junior notes issued by holding company Six Flags Inc. will assume control of the New York company.

Holders of senior secured notes issued by Six Flags' operating subsidiary would have received about 93 percent of the equity in the reorganized company under an earlier proposal. Under the new plan, they will be paid $470 million in cash by the Six Flags Inc. noteholders to satisfy their claims.

Thomas Lauria, an attorney for the Six Flags Inc. noteholders, says all other creditors will be paid in full by the group, which put together a financing package to offer an alternative reorganization plan.
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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby Airtime&Gravity » Wed Apr 28, 2010 4:19 pm

Six Flags could exit bankruptcy next week.

Creditors of Six Flags Inc (SIXFQ.OB) reached a settlement that will clear the way for the theme park operator to exit bankruptcy just as it enters its peak season.

Deals

The deal ends a nearly yearlong Chapter 11 reorganization and cuts the company's debt from about $2.7 billion to about $1.15 billion. But the agreement also wipes out current shareholders, sending Six Flags stock down more than 50 percent.

"This creates a balance sheet that positions the company to grow the business on a long-term basis," Six Flags' Chief Financial Officer Jeffrey Speed said after the hearing.

Speed said the company hoped to exit bankruptcy as soon as Monday. The timing depends on the finalizing of financing documents, a lawyer told the court.

Just before the court hearing started, two groups of bondholders reached an agreement that would allow a group led by Stark Investments, a hedge fund based in Milwaukee, to take control of the operator of 19 theme parks.

In return, a group of bondholders led by Avenue Capital Group would be paid $420 million for their bonds plus more than $50 million for additional fees and expenses.

Speed did not specify if growing the business included acquiring a competitor such as Cedar Fair (FUN.N) or finding a new owner for the company, which will have numerous hedge funds among its shareholders.

During testimony earlier this year, Speed said Six Flags had been approached by private equity group MidOcean Partners, real estate magnate Sam Zell, Providence Equity Partners, Apollo Management APOLO.UL and Far East International Holdings of Hong Kong.

Earlier this month the largest shareholder in Cedar Fair, Q Funding III of Fort Worth, Texas, said in a regulatory filing it had been approached by the Stark-led bondholders about merging the companies.

Cedar Fair owns 11 amusement parks.

Q Funding III did not immediately return a call for a comment.

SHAREHOLDERS WIPED OUT

During the bankruptcy, Six Flags switched its allegiance several times, from backing a plan crafted by lenders to one backed by senior bondholders, and finally to the current plan.

The company will borrow about $1.1 billion and sell more than $700 million in new shares. The money raised will pay secured lenders in full, as well as the Avenue Capital group of bondholders.

The new shares will be sold to bondholders in the Stark group, which includes Pentwater Capital Management, H Partners and Bay Harbour Management.

Six Flags stock fell 52 percent to about 8 cents in over-the-counter trading.

Among the shareholders whose stake is being wiped out is Resilient Capital Management, a hedge fund that held preferred stock known as PIERS.

An attorney for the group said shareholders did not deserve to be wiped out, especially when management could get 15 percent of the reorganized company as a performance bonus.

Judge Christopher Sontchi was not very sympathetic.

"I find it implausible at the highest level that further delaying this case will result in additional value to the estate and any value to the PIERS and common equity," said Sontchi.

While the Stark bondholders managed to overturn an agreed plan in their favor, they did so by coming up with financing to pay for it, something that Resilient has not done, Sontchi noted.

"The reality is that someone has come to the table with money and there is no better indication of value."

Sontchi also noted that Six Flag's chief executive, Mark Shapiro, had come in to turn around a company burdened with debt and had shown some positive results.

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


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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby jray21 » Wed Apr 28, 2010 4:55 pm

Airtime&Gravity wrote:

Among the shareholders whose stake is being wiped out is Resilient Capital Management, a hedge fund that held preferred stock known as PIERS.


Somehow I knew PIERS was in the middle of this. He didn't ask for much, just a long enough straw for the wine.
Last edited by jray21 on Thu Apr 29, 2010 9:59 pm.
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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby jedimaster1227 » Thu Apr 29, 2010 9:40 pm

http://www.star-telegram.com/2010/04/28/2148967/six-flags-reaches-deal-to-emerge.html

Six Flags Inc. resolved the final objections to its reorganization plan, clearing the way for the bankrupt theme-park owner to leave court protection by Monday, lawyers said.

Paul Harner, an attorney for Six Flags, and Tom Lauria, a lawyer for noteholders, announced a settlement between two groups of creditors today. The lawyers said they would ask U.S. Bankruptcy Judge Christopher Sontchi to sign an order approving the company's reorganization plan as early as today.

Sontchi praised the company's reorganization effort and said he would accept the order under a procedure called a certification of counsel. That procedure is typically used by judges to approve a settlement after both sides certify that a dispute has been resolved.

"The big strokes have been accomplished and peace has broken out," Lauria said. The company operates Six Flags Over Texas and Hurricane Harbor in Arlington, and Six Flags Fiesta Texas in San Antonio.

Six Flags, based in New York, filed for bankruptcy in June with plans to cut debt by $1.8 billion. When the company exits bankruptcy, it will have debt of about $1.15 billion, Harner said. Today's hearing ended weeks of wrangling between two groups of noteholders over the company's reorganization proposal.

Under the settlement, senior noteholders owed about $420 million will receive $470 million in cash, Harner said. Those noteholders had filed court papers claiming they were owed interest on their debt because it was being paid off early.

A group of investors led by Stark Investments of the Milwaukee suburb of St. Francis, Wis., will buy $725 million worth of the new stock being issued by Six Flags to help pay off its debts.

No single shareholder will control the company once it exits bankruptcy, Harner and Lauria said. The biggest shareholders will be Stark, Bay Harbour Management, H Partners and Pentwater Capital Management LP, Lauria said.

Shareholders lost a last-minute fight to halt the company's exit from bankruptcy so they could try to show Six Flags could afford to pay them something. Sontchi rejected their request, saying more testimony about the theoretical value of Six Flags was unnecessary.

"The reality is somebody has come to the table with money and there is not a better record of value," Sontchi told a lawyer for shareholder Resiliant Capital Management LLC. "It appears that your client is simply out of the money," Sontchi said. A few minutes later, Sontchi ended the court hearing.

About 15 percent of the new stock to be issued will be reserved for management incentives. A new board and Chief Executive Officer Mark Shapiro will decide the details on the payment of that incentive plan, Harner said.

Shapiro and Chief Financial Officer Jeffrey Speed will remain under the proposed settlement. The company's senior managers, including Speed and Shapiro, signed new, four-year contracts with Six Flags last year.
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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby jedimaster1227 » Fri Apr 30, 2010 6:54 pm

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/30/AR2010043002502.html

Washington Redskins owner Daniel Snyder is leaving the board of Six Flags and losing his equity investment in the amusement park company, a business he has chaired since winning a proxy fight five years ago. Snyder's departure from the board, and that of his friend and Redskins partner Dwight C. Schar, appears to bring an end to their involvement in the company, which has been on a wild ride since Snyder took over in 2005. Snyder's stake in the company when it filed for Chapter 11 bankruptcy protection last June was roughly 5 to 6 percent, but the stock had declined precipitously over the last several years as the company struggled.

Nine people, including Snyder's handpicked Six Flags chief executive Mark Shapiro, were named directors as part of a bankruptcy reorganization plan submitted by the company's junior bondholders, according to a filing submitted Friday in U.S. bankruptcy court in Delaware. Under the reorganization plan, Snyder could not be reappointed to the board without the consent of those junior bondholders. A spokesman for Snyder released a statement Friday that said Snyder would not seek reappointment. "Mr. Snyder and fellow board member Dwight Schar declined the opportunity to remain on the board of directors because of their other business commitments," according to the statement by Snyder spokesman Karl Swanson.

The 49-year-old Six Flags collapsed last June under interest payments on $2.4 billion in debt that Snyder inherited from the amusement park's previous owners. Six Flags, which owns about 20 parks throughout North American, sought under Snyder and Shapiro to create a more family-friendly atmosphere by adding new rides and attractions. The company drew 25 million visitors in 2008 and in-park spending per customer has increased, although Six Flags has not turned a profit under Shapiro, largely because of interest payments. The current economic climate, with unemployment above 9 percent, has made it difficult for Six Flags to increase revenue. Snyder took control of the company after a bitter proxy fight in 2005. He brought in the energetic Shapiro from ESPN to resurrect the struggling business. Shapiro's strategy was to remake Six Flags into a more wholesome, family-oriented experience, emphasizing safety, cleanliness and customer service while forging partnerships with major sponsors such as Sara Lee and Chase Card Services.

The company doubled its income from corporate sponsorship and from season ticket sales, and it added themed attractions based on the Looney Tunes characters, the Justice League of America, skateboarding legend Tony Hawk, the Wiggles and Thomas the Tank Engine. But its summer 2007 attendance was slammed by bad weather in Georgia and Texas, and by an accident on a ride at its park in Kentucky. The same year, it sold seven of its theme parks to a Jacksonville, Fla., company for $312 million in an effort to improve its balance sheet.

Six Flags slashed admission prices by half at several parks to improve attendance and cut a deal in 2008 with a Dubai developer to build a theme park in the Arab emirate as part of a huge entertainment complex. Despite improvements in operations and attendance, the company could not get out from under its interest expense of $175 million a year, which ate up a big chunk of earnings. In 2008, it said it would no longer pay a dividend to holders of certain preferred shares for the second consecutive quarter. The company was delisted from the New York Stock Exchange. Other major investors in Six Flags include Bill Gates' Cascade Investment and the hedge fund Renaissance Technologies.
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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby robbalvey » Fri Apr 30, 2010 7:11 pm

Forget about the theme parks, I want to know how this business is doing...

http://rollercoastercuts.com/services.html

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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby DOCTOR DOOM!!! » Fri Apr 30, 2010 7:54 pm

^ They really can't be SERIOUS!!! Is that real?!
Life is such a effin rollercoaster then it drops,
But why should I scream for, this is my theme park!


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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby nitrofan » Fri Apr 30, 2010 7:59 pm

robbalvey wrote:Forget about the theme parks, I want to know how this business is doing...

http://rollercoastercuts.com/services.html


Because every kid wants to have their birthday party at a hair cut place.

http://rollercoastercuts.com/partyon.html

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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby Zack44 » Sat May 01, 2010 7:45 am

And check out these amazing party themes!

Diva's Delight — Get girly and glamorous

Totally Gross — Have a hurling good time

Pirates Rock — Ahoy mateys, rock the plank

Wiggles & Giggles — Have Six Flags of fun

The Super Hero — Save the day

Princess Pampering Party — We'll treat you like royalty


...what exactly is the difference between the first and the last one?

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Re: Six Flags Bankruptcy & Restructuring Discussion

Postby CardCraze » Sat May 01, 2010 8:10 am

"I'm having my birthday party at Six Flags!

Awesome!

"Yeah, besides, I need a haircut anyways."

What?
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