Six Flags at risk for bankruptcy

Posted Thursday, March 12, 2009 9:43 AM | Contributed by Jeff

Six Flags Inc. said Wednesday that it might need to file for Bankruptcy Court protection if the company can't restructure its debt by mid-August. At the center of its financial worries is an Aug. 15 deadline to pay $287.5 million to owners of Six Flags' Preferred Income Equity Redeemable Shares, the company said in its annual report filed with the Securities and Exchange Commission. The payout to preferred stockholders could run more than $318 million when accrued and unpaid dividends are factored in, the filing said.

Read more from The LA Times.

Thursday, March 12, 2009 9:46 AM

I thought at this point that it was a foregone conclusion that bankruptcy was the company's only option. I sure hope that they can demonstrate that the company is on the right path going forward.

Thursday, March 12, 2009 11:00 AM

Well I guess I was right about the PIERS. They've come so far, and have lasted longer than I think they would have under previous leadership. For all of our sakes, let's hope they pull through.

Thursday, March 12, 2009 11:30 AM

Not that this is a surprise to anyone. That's while SIX has been trading near $0.25 for months. Shapiro has done a great job in turning around this company. They were in such a deep hole, it was almost impossible to get out.

Thursday, March 12, 2009 11:39 AM

You know, it could be the best thing that happens for them. They can shed all the crappy debt that prior management took on, and come out ready to rock and roll.

Sucks for the creditors, but there you go.

Thursday, March 12, 2009 12:37 PM

Aww, I so wanted them to pull through legit.

But hitting the reset button works too. :)

Thursday, March 12, 2009 4:39 PM

Sure are a lot of parks going bankrupt. I hope it works out for them. I can't imagine there being no six flags parks. I wonder if they will close any parks or sell them off. Anyone see this happening? Which parks do you guys think would be on the list to close or sell, if any?

Thursday, March 12, 2009 4:50 PM

Bankruptcy doesn't mean the business disappears.

Thursday, March 12, 2009 5:26 PM

SIX ended the day at $0.19 per share. Certainly many companies have emerged from bankruptcy protection in a much better condition than before. The trouble here is trying to refinance their huge debt load in the face of a horrible economy, recession and financial crisis. It's bad timing to go through this right now when money is so tight. Many companies have been unsuccessful in restructuring their debt and have been forced to liquidate. Now on the flip side of the coin, Six Flags picked the perfect time to demonstrate positive yearly cash flow to try to convince lenders that they have a viable business plan. As far as selling off parks, it's a buyer's market right now. Many chains are trying to sell assests while buyers are scarse and credit is tight.

Thursday, March 12, 2009 8:29 PM

I am reading a different story
(on screamscape) that Six Flags
is already approved for a 300 million
loan to pay this debt.
Do not know if that story is right or this one.

Thursday, March 12, 2009 10:29 PM

Believe it or not, I wish them luck.

Friday, March 13, 2009 9:50 AM

Another take, this one from The Washington Post.

Friday, March 13, 2009 12:28 PM

Wow, it's now trading at 14 cents a share.

Friday, March 13, 2009 1:24 PM

Just for further reading, here's a WSJ article.

I think the quote at the end sums it up:

"Our business is sound," Mr. Speed said, "but we have some back-of-the-house capital structure issues that have to be addressed now."

And Mr. Speed sounds like such a made up name. Like all the suits use park-related code names: Mr. Speed, Mr. Thrill, Mr. Fun, etc. :)

Friday, March 13, 2009 3:09 PM

Mr. Six runs marketing?

Friday, March 13, 2009 4:16 PM

^ long as he doesn't talk. ;)

Friday, March 13, 2009 4:37 PM

Don't you mean she?

Friday, March 13, 2009 6:28 PM

I didn't think they would disapear, but do any of you think a couple parks are on the chopping block? If so, which ones? It honestly sounds like the right move with all thing considered. If they did sell off any of the parks, I wonder if CF might buy one or two.

Friday, March 13, 2009 6:47 PM

I don't CF is in any position to purchase. They are selling a couple parks also.

Friday, March 13, 2009 7:27 PM

What a dilemma take a family of 4 to the park
for the day or buy 2000 shares of stock.

Six Flags has 100 million shares out
at the current stock price .14
does that mean you could buy six flags for 14 million
dollars (and own their debt of 900 million)


You must be logged in to post

POP Forums - ©2019, POP World Media, LLC