The Six Flags Agenda for First Day Hearing looks straight forward enough. The first day motions reveal nothing startling. But when you read the Affidavit of Jeffrey Speed in Support of First Day Pleadings (the “Speed Affidavit”), you get the sense that this bankruptcy has the potential to have twists and turns rivaling a Six Flags roller coaster.
The Six Flags debtors (the “Debtors”) have sought only limited relief for suppliers as part of their first day motions. The Debtors estimate that they owed approximately $17 million for goods and services when the bankruptcy petitions were filed. However, the Debtors seek initial authority to pay critical vendor claims in an amount not to exceed $604,543, Section 503(b)(9) claims in an amount not to exceed $4,043,780 and claims of foreign vendors, shippers and warehousemen and potential lien claimants in the approximate amount of $1,408,000. This means that suppliers holding about $11 million in trade debt will have to wait to see if there are any distributions at the end of this bankruptcy.
While the limited amount of the critical supplier relief sought is disappointing, it is not surprising.
Premier International Holdings Inc., et al. (aka Six Flags) has filed a consolidated list of the 20 largest unsecured creditors (the “Top Unsecured Creditor List”) for itself and its 36 affiliated debtors (the “Debtors”) in lieu of a separate list for each of the Debtors. The Top Unsecured Creditor List is based on the Debtors’ books and records as of approximately June 13, 2009. The Top Unsecured Creditor List does not include: (1) persons who come within the definition of “insider”; or (2) secured creditors, unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the largest unsecured claims.
Premier International Holdings Inc., et al. (aka Six Flags) and 36 of its subsidiaries and affiliates filed for bankruptcy in the Bankruptcy Court for the District of Delaware on Saturday, December 13, 2009. However, in good news for some suppliers, GP Holdings, Inc., one of 3 Six Flags’ direct subsidiaries, did not file bankruptcy. The case once again proves the value of one of our top 10 supplier recommendations in responding to a customer bankruptcy – confirm the identity of your customer. For further information of which entities are in and which are out of bankruptcy click on the following link.