Hedge fund, creditors bid for Six Flags

Hedge fund manager Stark Investments has assembled a group of Six Flags Inc. creditors and submitted an alternative reorganization plan to acquire most of the theme park company's ownership.

New York-based Six Flags (OTCBB: SIXFQ), which operates Six Flags New England based in Agawam, Mass., among other amusement parks nationally, filed for bankruptcy protection in June under a $2.4 billion debt load.

Six Flags said its existing bankruptcy plan would transfer stock to senior lenders, including JPMorgan Chase & Co., in exchange for debt.

However, the latest alternative plan, announced this weekend, has the support of note holders owning more than $500 million of notes the company issued, according to a Reuters report. The note holders who proposed the plan would receive up to 81 percent of the reorganized company’s stock, Reuters said, compared with the company’s current plan that proposes giving them less than 5 percent of the stock.

The case is pending in U.S. Bankruptcy Court in Delaware.