A group of bondholders led by Stark Investments will take control of Six Flags Inc under a proposal announced on Friday that would lift the theme park operator out of bankruptcy.
Under the proposal, which requires court approval, the Stark group will invest $725 million in new equity in Six Flags. Bondholders will also borrow $1.1 billion. The money will go to pay off creditors and provide working capital after the company emerges from bankruptcy.
Current management will remain in place under the plan, with Daniel Snyder, the owner of the Washington Redskins football team remaining as chairman, and Mark Shapiro, will stay as chief executive.
The proposed deal came on the ninth day of a trial in which the company was seeking approval of its plan of reorganization.
Friday's settlement is expected to go before the court for approval on April 16, with the company expecting to emerge from bankruptcy shortly thereafter.