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In a filing made today to the U.S. Securities and Exchange Commission, Washington Redskins NFL owner Daniel Snyder, dba Red Zone LLC, revealed he has notified Six Flags management that he believes it inappropriate for the company to sell its Houston amusement park, AstroWorld.
According to Red Zone's filing, it has expressed "its view that it would be inappropriate for (Six Flag's) to sell any park or real estate assets until the Company's stockholders have had the opportunity to express or withhold their consent to the proposal Red Zone plans to put before the Company's stockholders."
The filing went on to share that Red Zone has informed Six Flags that "any asset liquidation or additional severance or change in control agreements with the company's executives would impermissibly frustrate the stockholder franchise and if the Board or management takes any action which is detrimental to the company or frustrates the stockholder franchise."
Oklahoma City-based Six Flags, which has debt exceeding $2.1 billion and has been under fire by several, high-profile shareholders of late including Snyder, recently announced it would be selling the 109-acre AstroWorld for its real estate value. Houston real estate experts have estimated the 109 acres, part of the Reliant Park complex where the Houston Texans NFL franchise play, could fetch as much as $145 million.
As of the distribution of this executive email, Six Flags had made no public statement regarding Red Zone's SEC filings today.
Red Zone also indicated today that if it is successful in its consent solicitation, it would commence a fully funded cash tender offer to purchase up to 34.9 percent of Six Flags' outstanding shares at a price of $6.50 a share, if at any time during the 90 days following the date Red Zone's nominees are seated on the Six Flags' Board of Directors, the company's stock closes at a price at or lower than $6.50 per share for five consecutive trading days.
Snyder/Red Zone already has acquired more than 11 percent of the company's shares and is the majority shareholder. He wishes Red Zone to take control of the company and, as such, to designate Mark Shapiro as chief executive officer and Snyder as chairman of the Board of Directors.