Posted Tuesday, December 8, 2009 11:54 AM | Contributed by Jeff
Creditors of Six Flags Inc., the bankrupt theme-park owner, were denied the chance to file a reorganization plan that would compete with a company proposal. U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware, extended by 60 days the exclusive right of Six Flags managers to reorganize the company without facing a competing proposal from a group of noteholders owed more than $500 million.
Read more from Bloomberg.
I know I already said in the podcast that I'm getting tired of hearing about all of these issues and just want the final ruling. The truth is that I am really rooting for Six Flags Mgt to be able to pull this one out.
I really can't wait to see what they can do with the company once they are finally rid of the financial shackles they've been wearing. I think the organization could go really far with this group of leaders. I hope they stay on for a while.
Delaware bankruptcy courts grew in popularity because the judges there pretty much made a conscious effort to be extremely debtor friendly. As a consequence, its the place debtors want to file because they know they will have the most control over the case. No real surprise that the court denied the chance for the noteholders to file their own competing plan of reorganization.
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