Settlement reached in Six Flags bankruptcy

Posted | Contributed by Jeff

In the compromise announced in the Delaware bankruptcy court on March 19, the holding company bondholders will buy the new equity for cash. Combined with new loans, the cash infusion is to provide full payment with interest to operating company unsecured creditors, and pay off the $420 million owing to the operating company bondholders and $1.1 billion owing to the senior secured lenders.

Read more from The Daily Herald.

The settlement appears to be very similar to the plan that the junior bondholders were proposing. Are there significant differences?

Originally, the junior bondholders planned on replacing management, now they intend to leave Snyder and Shapiro in place.

This Reuters article has a little more detail:
http://www.reuters.com/article/idUSN1916902720100319

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