Six Flags noteholders' competing bankruptcy plan

Six Flags Inc. noteholders have offerred a new plan to reorganize the bankrupt company. The new plan is in opposition to the plan presented by the company's management. The competing plan would have the noteholders--who are collectively owed $1.3 billion--splitting the company amongst themselves and fully paying off Six Flags lenders. If okayed by U.S. Bankruptcy Judge Christopher Sontchi, the plan would kill Six Flags management's proposal that would have given 92 percent ownership of the company to lenders and would have likely provided company officials an equity stake. Company noteholders have called the management's plan "ill-conceived, poorly designed and non-confirmable." They noted that it would only benefit the management team and lenders "while eviscerating the recoveries of the vast bulk of their creditors." The judge has not yet made any ruling that would allow voting on this competing proposal to proceed. [Bloomberg]