370794 09: A rollercoaster makes a loop at Six Flags Amusement Park June 9, 2000 in Agawam, MA. Six Flags New England opened in May 2000, making the theme park the largest in the Northeast. (Photo by Darren McCollester/Newsmakers)
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.