Six Flags bankruptcy judge rejects exit financing

Posted | Contributed by Jeff

Six Flags Inc., the New York-based theme park owner, lost a bid to finance its exit from bankruptcy with loans and a stock sale when a judge said breakup fees in the proposed contract were too high. The judge said the breakup fees on a proposed $800 million loan and a $450 million rights offering were excessive “by an order of magnitude or more.” Creditors claimed Six Flags would have been forced to pay $42 million in fees to get out of the transactions later.