Theme-park chain Six Flags files for bankruptcy

[daguru]

(CNN) -- In an effort to shed $1.8 billion in debt, popular theme-park chain Six Flags announced Saturday that it was filing for Chapter 11 bankruptcy.

The filing will not affect the operation of the company's 20 parks in the United States, Mexico and Canada, said spokeswoman Sandra Daniels.

"This restructuring will have no impact on families who come out to our parks. They will not see an inch of difference," Daniels said.

In an online letter to employees, President and CEO Mark Shapiro said Six Flags inherited a $2.4 billion debt load that "cannot be refinanced in these financial markets."

"This process is strictly a financial restructuring of our debt and that's how you should view it and speak about it," Shapiro said in the message posted on the Six Flags Web site.

He said Six Flags was seeking expedited approval from the for the District of Delaware of a pre-negotiated plan of reorganization under Chapter 11 of the United States Bankruptcy Code.

He said the company actually performed well in 2008, attracting 25 million visitors and making $275 million. But it could not keep up with its debt obligations.

"That's a balancing act you just can't risk year in and year out," he said. "Today, we are moving to rectify our balance sheet once and for all. Believe me when I say we will emerge from this process stronger and more competitive than ever." Read Shapiro's online letter to employees

The restructuring would reduce the company's debt to $600 million.
Shapiro told employees that the company was on "solid ground" and the bankruptcy decision was "difficult." He assured them their paychecks and jobs were safe.

Source: CNN; http://www.cnn.com/2009/US/06/13/six.flags.bankruptcy/index.html

With the former Busch Parks up for sale, Universal in some financial troubles and now Six Flags.... Could Disney by the only real force in theme parks left in the states?
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Up or Down North, South, East, or West An Adventurer's Life is Best!

[ltldeb]

Can't say I'm surprised, but I'm wondering what this will mean for Disney.
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*~deb~*

[CTKnight3]

People knew this was coming for a while. They grew way too fast. The sad thing is that they say the same thing everyone else does to their employees. Of course this will affect them. There will be closings and downsizing and to pretend otherwise is ridiculous to anyone who has ever watched or been through a corporate bankruptcy.

Disney is better off because they are more diverse. BUT, they also went the downsizing route already to prevent this. I just hope they do not try to buy any of the parks. Disney would have to completely reconstruct them to make them anything close to a Disney park and to leave them as six flags parks with the Disney name would be horrible.

[daguru]

I don't think Disney would even consider any of the Six Flag parks, because of what you said, it would take WAY too much work (and money) to convert the parks into Disney parks...

Right now, the sniff of a rumor about the Disney parks deal with some (not all) of the SeaWorld parks, but I doubt anything will come out of that...
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Up or Down North, South, East, or West An Adventurer's Life is Best!

[RavenStGermaine]

I sure hope Six Flags can come out better for all of this. The Atlanta park seems to be doing well - it is always packed. Last month some friends of mine went, and they only got to ride 2 things in a four-hour span.
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Beth's Blog

[redbaron314]

let em die failure breeds strength the problems in this country is were becoming a bunch of dike leak pluggers instead of failure and restarts throwing money at most problems does not work allow it to die and rebuild the great failed and continued thomas edison took 1001 times before he got the light bulb right
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Ich bin der Piraten zu behaupten, was mir jetzt und für immer

[mdegrand]

[redbaron314]

thank you thank you
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Ich bin der Piraten zu behaupten, was mir jetzt und für immer

[mdegrand]

Ich bin auch Pirat

[redbaron314]

woher kommen Sie? Ich war in Wiesbaden geboren
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Ich bin der Piraten zu behaupten, was mir jetzt und für immer

[redbaron314]

[mdegrand]

[redbaron314]

my mother was American she was class mates to Priscilla when she was dating Elvis but i am American
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Ich bin der Piraten zu behaupten, was mir jetzt und für immer

[WDWFan]

The article quoted Six Flags as saying: "inherited a $2.4 billion debt load ". What? Did five flags died and leave them all its debt?

What they are really saying is "We made bad decisions that are now causing us issues."

They say this will not impact the parks or the employees, and I ask "Why Not?".

They mismanage their finances and got on this situation.... So they file for Bankruptcy and basically say they are going to shaft the folks they are in debt to and go on doing business as usual, which obviously is not doing it well?

Problem with the system here. They have debt, they have assets, then sell the assets to pay the debt.
This should not be rocket science and corps like this should not be allowed to welch on their obligations. So they file chapter 11, keep their employees and the debt holders fire off their folks cause they now don't have payments in full from Six Flags.

Something in this system is screwed up.


As to Disney, hopefully the belt tightening they did earlier on will help them avoid some of this. I can not see them buying out 6 flags even if it was on the block..
1) The re-theming would be too expensive
2) it dilutes the meaning of the Disney name
3) it would potentially make them a target for monopoly accusations

Them going after Busch Gardens and Sea World, which are on the market already, and which would fit the family better would seem a better fiscal decision.

[mdegrand]