Trial begins on Six Flags reorganization plan

[TNT]

For those who don't know

Trial began today-
03.08.10

WILMINGTON, Del. -- Theme-park operator Six Flags Inc. is defending its proposed Chapter 11 reorganization plan in Delaware bankruptcy court.

Six Flags ( SIX - news - people )' chief financial officer was the first witness Monday in a scheduled two-week trial over the plan, which would give holders of senior secured notes issued by Six Flags Operations Inc., a subsidiary, about 93 percent of the equity in the reorganized company.

Holders of junior notes issued by Six Flags Inc. would receive only about 5 percent of new equity under the plan. They have an alternative providing full cash recovery to other creditors and leaving themselves in control of Six Flags.

The junior noteholders claim the company has refused to work with them, but a Six Flags attorney on Monday denied accusations that noteholders were being "stiff-armed."


Much more news is to come from this trial

[FParker185]

Looks like it's about to come to an end.

http://www.reuters.com/article/idCNN1916902720100319

Sounds pretty good for the company as a whole.

[david]

current management will remain in place under the plan

[FParker185]

yep, which is the best part, it was under this management where for the first time in a very long time the company actually made any profit last year.