SIX FLAGS - CASE STUDY
Industry: Leisure Facilities
Transaction Type: Chapter 11 Reorganization
Six Flags, Inc. ("Six Flags") owns and operates regional theme and water parks around the world.
After a series of failed out-of-court restructuring efforts deriving from an over-leveraged balance sheet, Six Flags filed for chapter 11 bankruptcy protection on June 13, 2009.
In connection with the chapter 11 filing, Emerald professionals were retained as the exclusive financial advisor to an Ad Hoc Committee of unsecured HoldCo noteholders, focusing on the following action items:
- Proposing an alternative plan of reorganization to improve the recovery for HoldCo noteholders
- Preparing extensive valuation reports and providing expert testimony on behalf of HoldCo noteholders
As a result of Emerald professionals’ involvement, the following outcomes were successfully achieved:
- Emerald professionals facilitated a $1.2 billion first and second lien debt offering and raised $630.5 million in equity for the Company.
- Management accepted the Ad Hoc Committee’s alternate plan of reorganization, resulting in the confirmation of a plan that gave 100.0% of the equity in the reorganized Company to the HoldCo noteholders (as opposed to the Company’s initial proposal of 7.3%).