Six Flags junior noteholders line up financing

DOVER, Del. — Holders of junior notes issued by Six Flags Inc. have received a $1.1 billion financing commitment that could bolster their fight against the company’s Chapter 11 reorganization plan.

The junior noteholders filed a commitment letter from Goldman Sachs and UBS on Friday in Delaware bankruptcy court, where a battle over the company’s reorganization plan begins Monday.

The junior noteholders are fighting a plan that gives holders of senior secured notes issued by Six Flags Operations Inc., a subsidiary, about 93 percent of the equity in the reorganized company.

The junior noteholders would receive only about 5 percent of new equity under Six Flag’s plan, but would exercise control under their proposal, which they say provides full recovery in cash to all other creditors.