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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...