June 15 (Bloomberg) -- Six Flags Inc., the owner of 20 theme parks that hasn’t posted an annual profit since 1998, is seeking a $750 million credit facility as part of a reorganization plan under bankruptcy protection.

The new capital structure would include a $600 million term loan and a $150 million revolving credit line, as well as new common stock and options, the New York-based company said today in a regulatory filing.

Six Flags filed a Chapter 11 petition in U.S. Bankruptcy Court in Wilmington, Delaware, on June 13, listing assets of $3 billion and debt of $2.4 billion as of Dec. 31. The company said today it plans to use cash collateral from lenders led by JPMorgan Chase & Co to finance operations while it seeks court approval for a prearranged reorganization plan to cut its debt by about $1.8 billion and eliminate more than $300 million of preferred stock obligations. The reorganization plan has yet to be filed with the court.

“This proposed reorganization plan is likely to be met with resistance by the unsecured lenders,” CreditSights Inc. analysts Chris Snow and Frank Lee wrote in a report today, citing an equity offer of 10 percent in the reorganized company. That compares with an 85 percent stake bondholders were previously offered for a debt-for-equity exchange, the analysts wrote.

The new term loans would have an interest rate seven percentage points more than the London interbank offered rate, with a 2.5 percent floor, according to the filing. Six Flags said the five-year credit line would be backed by “substantially all assets.” The company would have the option of buying back the loans at 103 cents on the dollar in their first year, 101.5 cents in the second year and on par thereafter.

Six Flags didn’t disclose financing costs for the four-year revolver, which also would be secured by its assets.

‘Revival’ Path

As part of its Chapter 11 financing, Six Flags is seeking to renew or extend the maturities of existing letters of credit, subject to lender approval, and to get a so-called debtor-in- possession letter of credit facility to finance requirements.

“This action to clean up the balance sheet paves the way for a full revival of the company,” Chief Executive Officer Mark Shapiro said in a June 13 statement. “This process is strictly a financial restructuring of our debt.”

To contact the reporter on this story: Emre Peker in New York at epeker2@bloomberg.net

Last Updated: June 15, 2009 11:10 EDT