NEW YORK, Dec 1 (Reuters) - Bondholders of bankrupt Six Flags Inc SIXFQ.OB have asked a judge to terminate the theme park operator’s right to exclusively file a plan of reorganization, saying they have a better proposal.
Holders of more than $500 million of Six Flags Inc notes have offered a competing plan that they say would pay creditors more than the company’s offer.
“Justice would be served by terminating exclusivity,” said the Ad Hoc Committee of Six Flags Noteholders in a court document dated Nov. 30. “The debtors and other plan proponents are seeking confirmation of an inferior plan without first fully considering the SFI noteholder plan.”
The noteholders have also objected to the company’s motion to extend its exclusive period to file and solicit votes on its Chapter 11 plan.
Under exclusivity, a company in Chapter 11 bankruptcy has the sole right to file a plan of reorganization for the first 120 days of its bankruptcy.
Under the SFI noteholders’ proposal, holders of Six Flags Operations 12-1/4 percent notes would receive cash payment in full. In contrast, the company has proposed giving the noteholders about 25 percent of the new common stock and rights to purchase an additional 70 percent, according to the court filing.
For a related story with more details on the noteholders’ plan, please click [nN29404188]
Six Flags is the world’s largest operator of regional theme parks. It filed for bankruptcy in June with an original plan that transferred almost all of its stock to senior lenders, including JPMorgan Chase & Co (JPM.N), in return for cutting its debt.
The case is In re Premier International Holdings Inc. and Six Flags Inc., U.S. Bankruptcy Court, District of Delaware, No. 09-12019. (Reporting by Chelsea Emery, editing by Gerald E. McCormick) ((email@example.com; +1 646 223 6115; Reuters Messaging: firstname.lastname@example.org))