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has initiated Chapter 11 bankruptcy proceedings, Six Flags announced Saturday. Six (OTCBB: SIXF) board of directora on June 12 voted to begin reorganizatio proceedingsin U.S. Bankruptcy Court for the District of The company listed assetsof $3.0w3 billion and debts of $2.36 billion in its filing. New York-basedf Six Flags is plannint to reorganizethe company’as financial structure, which management said is feelinv the pressure of an inherited $2.
4 billion In a letter to employees, Six Flags CEO and presidentf Mark Shapiro said the company’s debt is left over from previouws management and despite the company making $275 milliohn last year, it has been difficult for Six Flagds to improve its balance sheet when paying out $175 millio n in interest on debt, Shapiro He added that more than $400 millioh in debt is due within the next 12 and the company is having to spenfd $100 million in park improvements in an atmospher where refinancing is difficult. Shapiro assured employees no staft reductions will arise out ofthe filing, and employeesz will continue to be paid and receive benefits.
Shapiro said the bankruptcy plan has the supporgt ofthe company’s lenders and the agenrt administering the company’s $1.1 billion senior secured credir facility. Six Flags parks, includintg Six Flags Great America, will continue to operat e as usualunder reorganization. Six Flags sold several propertie s last year toraise capital. It still operates 20 amusementt parks inNorth America.
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