A bankruptcy court judge has approved the sale of roller-coaster maker Arrow Dynamics for $1.9 million to S&S Power Inc. of Logan.
The purchase price consisted of $600,000 in cash payable at closing, $500,000 payable from parts sales over the next two years and $800,000 payable from future ride sales.
Arrow Dynamics, based in Clearfield, filed for Chapter 11 bankruptcy protection in December after losing millions of dollars building the "X" coaster for Six Flags Magic Mountain, an amusement park near Los Angeles.
Stan Checketts, chief executive officer for S&S Power, said his decision to purchase the bankrupt company was based on nostalgia.
"They built some of the very first rides that went in the first Disney park. They've got a lot of great coasters around the world. I just felt like it would be a great thing to pull them out of bankruptcy and move forward with them," Checketts said.
Checketts said he plans to keep most of Arrow's remaining 20 employees, but the company's current manufacturing facilities likely will be moved to Logan.
At least three other bidders attempted to purchase Arrow' assets, including a $2.25 million bid submitted in May by Hong Kong businessman James T. King and partner Conrad R. Wagner of Florida.
That bid, along with another offer by Six Flags Theme Parks Inc., was not acceptable to the unsecured creditors' committee, comprised of 20 of the largest unsecured claims against the company, because the bid was based on credit and offered only $384,479 in cash at closing.
Steven McCardell, an attorney representing the unsecured creditors' committee, said the committee did not object to S&S Power's bid.
"From our standpoint, this was the best available alternative," McCardell said.
In connection with the sale, Arrow and Six Flags entered into a settlement agreement which provided for the release of more than $11 million in claims that Six Flags had asserted.
The distribution of S&S Power's sale proceeds will be used to meet priority and secured claims, which amount to roughly $3 million. After those claims are paid, distribution of any remaining proceeds will be made to unsecured creditors.
S&S Power Inc., founded in 1992, has built hundreds of amusement rides located in 24 countries. The company introduced the first air-launch tower and built the world's fastest roller-coaster, located in Japan, which reaches speeds of 100 miles per hour.
E-mail: danderton@desnews.com