Joined: Jan 20, 2006 Posts: 1040 Location: Lexington, TN
Posted: Fri Jun 19, 2009 6:22 am Post subject:
WDWFan wrote:
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.
so true besides with six flags not being in orlando and sea world is the disney could start to expand their property by buy sea world then look on the map fl shrinks and disney expands on the map _________________
Ich bin der Piraten zu behaupten, was mir jetzt und für immer
Joined: Feb 21, 2006 Posts: 4196 Location: Sanford, Fl
Posted: Fri Jun 19, 2009 8:16 am Post subject:
They have had debt problems for several years now, ever since they were sold by Time Warner in 1998. The new owners started to rebrand their smaller parks to Six Flags and started to spend money freely... racking up nearly $2 billion in debt. It took a near revolt by the shareholders to make changes in management. In 2005/2006 they brought in a new leadership/management team to turn things around. That is when they started to sell of parks and rides... They also started to change the focus of the parks, away from being just another amusement park to being "more like Disney".
The new management has turned things around some what, their finances have been improving, just not enough. There was so much bad debt and just not enough time to fix it all... Between the bad debt and the fall of the economy, they just can't recover fast enough...
This will effect the parks, but not drastically.... It will probably be like Disney, laying off some staff which will then trickle down and effect park operations (similar to some recent issues at WDW). They may try to sell more rides and maybe even a park or two, but I don't think it is going to be wholesale or drastic changes... _________________ Up or Down North, South, East, or West An Adventurer's Life is Best!
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