Six Flags to spend cash for daily operations
A United States bankruptcy judge has given Six Flags permission to spend the cash held as collateral for its lenders in order to continue operations. Judge Christopher S. Sontchi in Wilmington, Delaware, overruled objections from Avenue Capital Management II, owed about $100 million by Six Flags, saying the lender didn't have the right as a minority lender to stop the company from using the cash it produces to keep operating. The Washington Post reports that Six Flags owes its lenders, represented by J.P. Morgan Chase, around $1.1 billion, which is guaranteed by the firm's assets, including whatever cash is generated during the current summer season, as well as land, equipment, and other tangible goods. Six Flags company attorney has said that as of the company's last estimate, it held about $7 million in cash. New York-based Six Flags filed for Chapter 11 bankruptcy protection on June 13, after months of financial woes.