What will SF do with the $257 million punitive dam

What do you think SF will do with the extra $257 million punitive damage award from Time Warner? Will it all go back to SFoG? or will they use it to enhance all of their parks? $257 million is fairly good chunk of cash and could buy a lot of coasters and flats.

Premeir Parks could use it to pay back some of its $2.3 billion long term debt that it currently has.

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James Draeger
-Who should be studying for that Managerial Accounting exam tonight

That was exactly what I thought when I saw this topic. They should consider it free money and throw it at their debt.

It would be absolutely silly if they used it for anything other than paying off debt. Does anyone have any idea if paying off 10% of their debt in one shot will help their financial outlook that much? If it doesn't, it might not make much sense to spend it that way.

I am sure putting that money toward their debt would reduce some of the interest that they are paying.

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Arena football has arrived in the Windy City. Go "Chicago Rush"

Six Flags doesn't get that money, the investors in Six Flags Over Georgia get the money.

And Draegs, the company hasn't been called Premier Parks now for a long time. ;)

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Jeff - Webmaster/Admin - CoasterBuzz.com - Sillynonsense.com
"Pray that your country undergoes recovery!" - KMFDM

For once I have to say that Jeff is right. ;) That money is for SFoG investors and SFoG investors only. SF Inc. and any other SF park will not see any of that money.

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**Why does Sea World have a seafood restaurant? I'm halfway through my fish burger and I realize, Oh my gosh....I could be eating a slow learner.**

This brings up a question ive had. Are six flags parks indi. owned and SF INC runs them? Or does each one have a set of investors that makes up SF INC?

I believe SFOT and SFOG are the only two parks that are owned by a limited partnership and managed by SF Inc. I completely forgot that the limited partners for SFOG were the plaintiffs in this suit.

bigboy is right. I think there may have been (not sure) more parks owned by investors, but SF has gradually bought them all out.

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Is that a Q-bot in your pocket or are you just happy to see me?

This suit is years in the making. Six Flags wholly owns all of their parks now as best I can tell. You'd have to search the news (because we've posted info about this suit in prior years), but if I call correctly it had to do with SFOG being partially owned by a set of investors and partly by Time Warner. The accusation (and finding of the suit) was that Time Warner poorly managed the park so that its value would decrease, hence they could buy it cheap to attain majority ownership.

The current entity, Six Flags, Inc. (formerly Premier Parks) bought the original Six Flags parks and many others well after that.

Bottom line, this suit has zero to do with the Six Flags we know today.

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Jeff - Webmaster/Admin - CoasterBuzz.com - Sillynonsense.com
"Pray that your country undergoes recovery!" - KMFDM

SFOG is still owned by the investors to the best of my knowledge.

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Is that a Q-bot in your pocket or are you just happy to see me?

As is SFOT. It will be that way until 2026, and at that point, Six Flags INC. will have the option to buy the parks from the Investment groups, or to continue managing the parks as it is now. (If there still around)

As it appears in the Six Flags Annual Report:
PARTNERSHIP STRUCTURE. On March 18, 1997, Six Flags completed arrangements
pursuant to which we will manage the Georgia park through 2026. Under the
agreements governing the arrangements, the Georgia park is owned (excluding real
property) by the Georgia Partnership of which our subsidiary is the managing
general partner. In the second quarter of 1997, two subsidiaries of Six Flags
made a tender offer for partnership interests ("LP Units") in the 99% limited
partner of the Georgia Partnership (the "Georgia Limited Partner"), that valued the Georgia park at $250 million (the "Georgia
Tender Offer Price"). Six Flags purchased approximately 25% of the LP Units in
the 1997 tender offer at an aggregate price of $62.7 million.

The key elements of the arrangements are as follows: (i) the Georgia
Limited Partner (which is not affiliated with us except for our ownership of
certain LP Units) receives minimum annual distributions (including rent on the
real estate) of $20.3 million in 2001, increasing each subsequent year in
proportion to increases in the cost of living; (ii) thereafter, we are entitled
to receive from available cash (after provision for reasonable reserves and
after capital expenditures per annum of approximately 6% of prior year's
revenues) a management fee equal to 3% of the prior year's gross revenues, and,
thereafter, any additional available cash is distributed 95% to us and 5% to the
Georgia Limited Partner; (iii) on an annual basis, we are required to offer to
purchase an additional 5% of the LP Units (accumulating to the extent not
purchased in any given year) at a price based on a valuation for the park equal
to the greater of $250.0 million or a value derived by multiplying the
weighted-average four year EBITDA of the park and, to the extent positive, Six
Flags White Water Atlanta, by 8.0; (iv) in 2027, we have the option to acquire
all remaining interests in the Georgia park at a price based on the Georgia
Tender Offer Price, increased in proportion to the increase in the cost of
living between December 1996 and December 2026; and (v) we are required to make
minimum capital expenditures at the Georgia park during rolling five-year
periods, based generally on 6% of the park's revenues. We were not required to
purchase a material number of LP Units in the 1998, 1999, 2000 and 2001 offers
to purchase. Cash flow from operations at the Georgia park is used to satisfy
these requirements first, before any funds are required from us. In addition, we
are entitled to retain our proportionate share (based on our holdings of LP
Units) of distributions made to the Georgia Limited Partner. In connection with
our acquisition of the former Six Flags, we entered into a Subordinated
Indemnity Agreement (the "Subordinated Indemnity Agreement") with certain Six
Flags entities, Time Warner Inc. ("Time Warner") and an affiliate of Time
Warner, pursuant to which, among other things, we transferred to Time Warner
(which has guaranteed the Six Flags obligations under these arrangements) record
title to the corporations which own the entities that have purchased and will
purchase LP Units, and we received an assignment from Time Warner of all cash
flow received on such LP Units and we otherwise control such entities. In
addition, we issued preferred stock of the managing partner of the Georgia
Partnership to Time Warner. In the event of a default by us of our obligations
described in this paragraph, these arrangements would permit Time Warner to take
full control of both the entities that own LP Units and the managing partner.
After all such obligations have been satisfied, Time Warner is required to
retransfer to us the entire equity interests of these entities.

The Report:
http://edgar.sec.gov/Archives/edgar/data/701374/000091205702012407/a2073739z10-k.txt

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"Grit Your Teeth, Bare The Load, Enjoy your ride, on Thunder Road"

Ah, thanks for clearing that up.

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Jeff - Webmaster/Admin - CoasterBuzz.com - Sillynonsense.com
"Pray that your country undergoes recovery!" - KMFDM

One question. Does the award from the suit go to the holders of the LP units at the time that the law suit refers to, or does it go to the current holders of the LP units?

Oh, Good. I was worried some people wouldn't read all of that.

They could always give some to the CPC!
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Support the Coaster Preservation Club at www.coasterpreservation.tk

Good lord. See folks, this is why you shouldn't drink whdn you're pregnant. Same goes for crack, heroin, etc.

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- "I used to be in the audio/visual club, but I was kicked out because of my views on Vietnam........and I was stealing projectors" - Homer Simpson

Whatever, I am not a female! Once again, get it right!
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Support the Coaster Preservation Club at www.coasterpreservation.tk

I think he meant you were the *result* of someone drinking while pregnant.....

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Formally Suspended Andrew, proud member since May 2001.