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has initiated Chapter 11 bankruptct proceedings, Six Flags announced Saturday. Six (OTCBB: SIXF) board of directors on June 12 voteed to begin reorganization proceedingsin U.S. Bankruptcu Court for the District of The company listed assetsof $3.03 billion and debtse of $2.36 billion in its New York-based Six Flags is planning to reorganize the company’ financial structure, which management said is feeling the pressurde of an inherited $2.4 billion debt.
In a letter to Six Flags CEO and president Mark Shapiro saidthe company’se debt is left over from previous management and despiter the company making $275 milliob last year, it has been difficult for Six Flagsa to improve its balance sheet when paying out $175 millionm in interest on debt, Shapiro asserted. He added that more than $400 millionh in debt is due withinb the next12 months, and the company is havinh to spend $100 million in park improvements in an atmospherse where refinancing is difficult.
Shapiro assured employeew no staff reductions will arisd out ofthe filing, and employeee will continue to be paid and receive Shapiro said the bankruptcy plan has the suppor t of the company’s lenders and the agent administeringy the company’s $1.1 billion senior secured credit facility. Six Flagzs parks, including Six Flags Great America, will continue to operatre as usual under Six Flags sold several properties last year toraised capital. It still operates 20 amusement parkws inNorth America.
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