Sept. 15 (Bloomberg) -- Six Flags Inc. noteholders presented a plan to reorganize the bankrupt theme park owner that includes a stock offering valued at $450 million.

Noteholders, who are collectively owed $1.3 billion, would split the company among themselves and fully pay off Six Flags lenders under the plan. Some money to finance the plan would be provided by a rights offering that would be fully guaranteed to sell all the stock, a group said yesterday in papers in U.S. Bankruptcy Court in Wilmington, Delaware.

The noteholders asked U.S. Bankruptcy Judge Christopher Sontchi for permission to file the competing plan and allow creditors to vote on it. Six Flags managers have offered a plan that would give 92 percent of the New York-based company to lenders and potentially hand company officials an equity stake.

Noteholders called the management plan “ill-conceived, poorly designed and non-confirmable,” saying it benefits only the management team and the lenders “while eviscerating the recoveries of the vast bulk of their creditors.”

Before the noteholders can pursue their plan, Sontchi must end the managers’ right to reorganize the company without facing a competing proposal. Should Sontchi end that so-called exclusivity period, noteholders would be free to file their plan and try to convince other creditors to support it.

$30 Million Bonus

Managers are backing an inferior reorganization plan because it would benefit them, noteholders attorneys said in court papers. The managers also renegotiated their employment contracts less than three months before the company filed for bankruptcy, adding the right to split a $30 million bonus in cash and stock options should the company successfully reorganize.

That bonus would be “payable irrespective of creditor recoveries,” noteholders said. At the time it was negotiated, the company was trying to restructure debt to avoid bankruptcy.

Company Chief Financial Officer Jeffrey Speed and spokeswoman Sandra Daniels didn’t immediately return phone calls for comment.

Under the management plan, lenders would get control of the company and a new $600 million loan in exchange for canceling $1.13 billion. Two groups of noteholders would be given 8 percent of the new stock. As much as 10 percent of the new stock would be set aside for management bonuses, according to court records.

The lead case is Premier International Holdings Inc., 09- 12019, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net.

Last Updated: September 15, 2009 17:41 EDT