Kentucky sues Six Flags for rides at Kentucky Kingdom site

Jeffrey Seifert said:
I did say articles, as in plural. I've read pretty much everything I could find, however, I haven't found anything that mentions $2 million still owed either as unpaid debt or a termination clause.

If anyone has seen such an article would you be kind enough to provide a little more information than "somewhere"--like maybe a link?

Here it is. Page 2 of said article: http://www.courier-journal.com/article/20100205/BUSINESS/2050349/Si...made+money

Debtors can reject/terminate certain contracts in bankruptcy. But they will owe whatever damages are owed under the terms of the lease. However, those damages are paid in bankruptcy dollars which in almost all cases are worth pennies on the dollar, if anything.

Wouldn't rides being placed on leased property be like furniture being placed on a rented property?

Regardless, this is going to be interesting how this turns out. I am on board with SF on this.

They (SF) is leasing the property and doing maintenance along with painting stuff which makes sense to do, but bringing in furniture (like rides) would mean they can take them away when they are done with their lease.

We shall see what the lease agreement entails along with the bankruptcy rules.

You don't have to get permits and have engineers help you bring furniture into an office. Plus, an office lease is written differently than a land lease. I was reading a lease yesterday that specifically cited anything having a concrete foundation as being a permanent structure and thus being surrendered to the landowner at termination.

If the Six Flags/Fair Board lease was written similarly to the one I read, then the Fair Board has a shot.

^If that is the case, then the Lassiter lawsuit should have included the Kentucky Fair Board as Jeff pointed out. Why was SF paying taxes on these rides also?

The Kentucky Fair Board can't have their cake and eat it too.

I hate that saying. What's the point in having cake if you can't eat it.

The same way you go into a bar and not drink an alcoholic beverage.

Lease may have had an indemnification clause to protect the Fair Board.

I understand it to be pretty common in commercial land leases for the renters to take over insurance and property taxes on everything, too.

It doesn't matter what any of us say, it will be up to a Delaware judge in the bankruptcy court to decide whether SF owns the rides or not.

We will probably know the results in a couple of days.

Right, I've been enjoying following this story and talking about it with some of the people I work with who handle leases regularly. Really interesting stuff.

It really comes down to the judge's interpretation of the lease and of Kentucky law regarding a permanent fixture.

- Jeff

Chitown said:
The same way you go into a bar and not drink an alcoholic beverage.

For that analogy to be accurate, you'd have to buy the drink and not drink it.

The lease could include a cause that says SFI was to pAy the taxes, that isn't uncommon at all. As far as the drop tower accident, just because the fair board can lay claim to the rides still doesn't make them liable as the rides, operatation of rides, and care of the rides was leased out to another company.

As for rides, I keep reading the terms permenant or semi perm in these articles so it seems that any ride with a perm foundation could belong yo the fair board. It's been written in articles for years about SFI having to ask permission to remove rides. I'm thinking they may end up winning this one.

Jason Hammond said:
I hate that saying. What's the point in having cake if you can't eat it.

It means you can't both have your cake and eat it.

Once you eat it it is gone and you no longer have it.

It is literally impossible to both eat a cake and have it too.

Jeez, Gonch...you're like the encyclopedia of famous expressions. :)

Shut up, Carrie. :)

I would still have it. It'd have it in my mouth and eventually my stomach.

Fine, "You can't have your cake in your hand and eat it too. Unless you put your hand down your throat. Or throw up the cake. Or both. Don't do either one."

Mamoosh said:

Lord Gonchar said: Shut up, Carrie. :)

Not a famous expression...yet :)

"Screw you guys...I'm going home!"

Carrie M. said:

"Screw you guys...I'm going home!"

Let me guess-- Dan Snyder, from his box at FedEx Field, November 2009?