Bankruptcy judge grants Six Flags more time to solicit votes for reorganization plan

Six Flags wins more time for reorganization plan

WILMINGTON, Del. — Theme park operator Six Flags Inc. will have more time to gain support for its bankruptcy reorganization.

A Delaware judge on Friday extended the company’s exclusive right to reorganize until April 5. If the plan isn’t approved following a trial next month, however, a group of noteholders could submit an alternative.

Under Six Flags’ plan, holders of senior secured notes issued by Six Flags Operations Inc., a subsidiary, would receive about 93 percent of the equity in the reorganized company.

Holders of junior notes issued by Six Flags Inc. would receive only about 5 percent of new equity under the company’s plan. They claim to have lined up $1.8 billion in financing for an alternative plan that would increase the recovery for creditors.