Six Flags to swap debt for equity as part of Ch. 11 restructuring; execs to get bonuses
By APFriday, August 21, 2009
Six Flags lays out Ch. 11 restructuring plan
WILMINGTON, Del. — A plan filed Friday calls for Six Flags creditors to own a majority stake in the amusement-park company when it emerges from Chapter 11 bankruptcy protection.
According to court documents, banks that loaned the company money will wind up owning 92 percent of Six Flags common stock.
Six Flags sought federal bankruptcy protection in June from the U.S. Bankruptcy Court in Delaware
Meanwhile, top executives at the New York-based company will receive emergence bonuses totaling more than $5 million.
They also stand to get 10 percent of the new stock in options and restricted stock. That’s a perk that’s potentially worth tens of millions of dollars.
The plan still must be approved by the court.
Tags: Amusement And Theme Parks, Delaware, Financing, North America, Recreation And Leisure, Restructuring And Recapitalization, United States, Wilmington
