Six Flag seeks Chapter 11, parks stay open
Posted on: Saturday, 13 June 2009, 14:10 CDT
The U.S. amusement park chain Six Flags, Inc filed for Chapter 11 bankruptcy Saturday as it wrested with more than $2 billion in debt and slumping attendance.
Mark Shapiro, president and CEO, said in a letter to employees posted on the company Web site that the bankruptcy filing Delaware had been pre-arranged and was due in large part to debt inherited from the previous ownership.
Even if you have a record year and make approximately $275 million as we did last year, when you have to pay out approximately $175 million in interest expense on your debt and $100MM in park improvements to maintain and keep up with the business, that's a balancing act you just can't risk year in and year out,
Shapiro wrote.
Shapiro said the Six Flags brand remained solid and that employees and vendors would continue to be paid.
Six Flags operates 20 parks in the United States and is entering its critical summer season facing a recession that will likely hurt attendance.
The Wall Street Journal said Six Flags was taken over by Daniel Snyder, the owner of the Washington Redskins, in 2005. Another sizable stakeholder is Bill Gates' investment firm Cascade Investment.
Source: United Press International
Related Articles
- SIX FLAGS ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS AND REAFFIRMS 2009 ADJUSTED EBITDA FORECAST OF $190 MILLION
- SIX FLAGS LAUNCHES GREEN INITIATIVE
- Six Flags Extends Minimum Tender Deadline in Exchange Offers
- Six Flags seeks debt-for-equity swap
- Abandon Interactive Entertainment Partners With Six Flags to Promote Freaky Creatures MMO Game
- Six Flags Announces Full-Year and Fourth Quarter 2008 Results
- Six Flags Quarterly PIERS Dividend
- Six Flags Adopts Shareholder Rights Plan
- Brash Entertainment and Six Flags Partner to Admit Gamers of All Ages to Six Flags Fun Park Videogame
- Six Flags Puts Itself Up for Sale
 |
 |
User Comments (0)
RSS Feeds