Avenue Beats Back Stark’s Six Flags Disclosure Bid

Jan 11 2010 | 2:49am ET

Score another court victory for the Avenue Capital Group-led Six Flags secured creditors steering committee against a group of unsecured creditors, led by fellow hedge fund Stark Investments.

A Delaware bankruptcy court judge rejected a bid by Stark and its fellow junior noteholders to have Avenue disclose its holdings, ruling that the Avenue group does not have to reveal just how many Six Flags bonds they own.

“The law contemplates a subset of a larger group authorized by the larger group to act on its behalf,” Judge Christopher Sontchi ruled. “That is not the case here.”

“I don’t think ad hoc committees are subject” to the law in question, which requires disclosures by committees in a bankruptcy case, he said.

Avenue and its fellow committee members argued that any disclosure would unnecessarily reveal their trading strategies.

Six Flags said last week that it could emerge from bankruptcy as soon as March. Under its current reorganization plan, which requires court approval, Avenue would gain control of the theme park operator as part of an $830 million financing deal.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Ex-Hedge Fund Billionaire Won’t Run For Senate

Jan 23 2015 | 5:48am ET

Ex-hedge fund manager Tom Steyer will not run for Senate after Sen. Barbara Boxer...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note