City of New Orleans Press Releases

FOR IMMEDIATE RELEASE
October 8, 2009

BANKRUPTCY COURT APPROVES CITY OF NEW ORLEANS AND INDUSTRIAL DEVELOPMENT BOARD

*BANKRUPTCY COURT APPROVED SETTLEMENT AGREEMENT* Today, the United States Bankruptcy Court for the District of Delaware approved the Lease Termination and Settlement Agreement between Six Flags, SFJ Management, Inc., City of New Orleans and the IDB that was executed and filed on September 18, 2009 with the Court. In June 2009, Six Flags declared bankruptcy. Prior to Six Flags bankruptcy filing, meetings were held in May of this year in New York City to discuss recovery of insurance proceeds and the future development of the park. Also earlier this year, the City of New Orleans filed a Temporary Restraining Order (TRO) prohibiting the company from removing any rides, attractions and/or assets, or parts from the Park. The TRO was based upon the premise that Six Flags defaulted on its obligations under its lease with the IDB and the City of New Orleans. The Agreement approved by the Bankruptcy Court includes that: Six Flags will make a cash payment to the City in the amount of $3million. The lease agreement, and all other agreements related to the lease agreement, shall be deemed terminated. Six Flags shall vacate and deliver to the City the leased premises, including any improvements in their current condition. The City will be entitled to receive 25% of any net insurance proceeds Six Flags recovers on its insurance claims for property damage caused by Hurricane Katrina to the extent Six Flags net recovery exceeds $65 million. Six Flags shall transfer to the IDB real property owned by SFJ Management. Parties shall dismiss all pending legal actions. "The City Attorney's Office has worked diligently to bring closure to this matter and is happy about today's outcome as the goal has always been to positively resolve this matter, " said New Orleans City Attorney, Penya Moses-Fields. "This decision puts us one step closer to bringing back this City for the citizens of New Orleans but specifically for the residents of New Orleans East." We look forward to finalizing the necessary closing documents for the transfer of the additional property by Mid-November.
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CITY OF NEW ORLEANS Mayor’s Press Office 1300 Perdido Street, Suite 2E04 New Orleans, Louisiana 70112