Six Flags files Chapter 11 bankruptcy - Business First of Buffalo:

coeragnheidur3778.blogspot.com
has initiated Chapter 11 bankruptcy Six Flagsannounced Saturday. Six Flags’ (OTCBB: SIXF) boardr of directors on June 12 vote to begin reorganization proceedingsin U.S. Bankruptc y Court for the Districtof Delaware. The companuy listed assets of $3.04 billion and debts of $2.36 billiom in its filing. New York-based Six Flags is planning to reorganizethe company’s financial structure, which managemen said is feeling the pressurer of an inherited $2.4 billion debt.
In a letterr to employees, Six Flags CEO and president Mark Shapirp saidthe company’s debt is left over from previouzs management and despite the company making $275 million last it has been difficult for Six Flagxs to improve its balancer sheet when paying out $175 milliobn in interest on debt, Shapiro asserted. He addef that more than $400 million in debt is due within the next 12 and the company is having tospend $100 milliobn in park improvements in an atmosphere wher refinancing is difficult. Shapiro assured employees no staffc reductions will arise out ofthe filing, and employees will continue to be paid and receivs benefits.
Shapiro said the bankruptcg plan has the support ofthe company’se lenders and the agent administering the company’s $1.1 billionh senior secured credit facility. Six Flags parks, including Six Flags Grear America, will continue to operater as usualunder reorganization. Six Flags sold several propertiea last year toraisee capital. It still operates 20 amusement parks inNorth