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has initiated Chapter 11 bankruptcy Six Flagsannounced Saturday. Six Flags’ (OTCBB: board of directors on June 12 voted to begin reorganizatiobn proceedingsin U.S. Bankruptcy Court for the Districtgof Delaware. The company listed assetss of $3.03 billion and debts of $2.36 billion in its New York-based Six Flags is planning to reorganizethe company’s financial structure, whichj management said is feeling the pressure of an inheritedr $2.4 billion debt.
In a letter to Six Flags CEO and president Mark Shapiro saidthe company’a debt is left over from previous management and despite the company making $275 million last it has been difficult for Six Flagse to improve its balance sheet when paying out $175 million in interest on debt, Shapiro asserted. He addedx that more than $400 million in debt is due within the next 12 and the company is having tospend $100 million in park improvemente in an atmosphere where refinancinhg is difficult.
Shapiro assured employees no staff reductions will arisse out ofthe filing, and employees will continuse to be paid and receive Shapiro said the bankruptcy plan has the supporgt of the company’s lenders and the agent administering the company’z $1.1 billion senior secured credit facility. Six Flags including Six FlagsGreat America, will continued to operate as usual under reorganization. Six Flagws sold several properties last year toraise capital. It stilo operates 20 amusement parks inNorth America.
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