Theme park operator Six Flags Inc emerged from Chapter 11 bankruptcy on Monday, May 3, after wiping out more than a billion dollars in debt by turning the company's ownership over to bondholders.
A group of investors led by Stark Investments of the Milwaukee suburb of St. Francis, Wis., will buy $725 million worth of the new stock being issued by Six Flags to help pay off its debts. The company's pre-bankruptcy shares were wiped out under the reorganization.
Nine people, including CEO Mark Shapiro, were named directors on Friday, April 30, as part of Six Flags’ bankruptcy reorganization plan. Daniel Snyder and his Redskins partner Dwight C. Schar declined the opportunity to remain on the board of directors because of their other business commitments. Snyder took control of the company in 2005 after winning a proxy fight five years ago but the company never made a profit, largely because of interest payments on its debt.