Six Flags Inc. gained bankruptcy-court approval previous week to give a theme park ravaged by Hurricane Katrina above to the City of New Orleans.

The deal clears the way for the city to sell the former Six Flags New Orleans to a developer that would reopen the park; however that plan remains on shaky ground. The theme park has been closed from August 2005, as soon as Hurricane Katrina inflicted catastrophic damage also covered the property with several feet of water.

Six Flags, which filed for Chapter 11 bankruptcy protection in June, struck a deal to provide control of the property and the idled rides back to New Orleans. The company also granted to pay the city $3 million and to share a portion of insurance recoveries over $65 million, according to bankruptcy-court documents.

The deal halts legal action the city took against Six Flags in connection to keeping the park closed. With control of the property, New Orleans can now go ahead with plans to reopen the tourist attraction on the city’s eastern edge.

In August, SpongeBob SquarePants also Dora the Explorer joined Mayor Ray Nagin to announce that the park will reopen as “Nickelodeon Universe New Orleans.” However those plans fell apart previous month when the children’s cable network pulled out of the deal with Southern Star Amusement, the company that plans to renew the site.

Southern Star also said previous month that it will move ahead with plans to buy the land from the city, even without Nickelodeon.