Posted Friday, October 19, 2007 9:37 AM | Contributed by Jeff
A federal judge approved the sale of three of the biggest rides at the now bankrupt Wild West World. According to court documents, the Sidewinder offer is $435,000. The Fiesta Mexicana offer is $300,000. The company that originally sold the rides to Wild West World, ride broker Moser, has filed bankruptcy claims totaling more than $534,000.
Read more and see video from KAKE/Wichita.
Friday, October 19, 2007 9:39 AM
So here's my question, why would Moser essentially be financing the rides when one bad debt can ruin you? I mean, get the cash, let the customer's bank handle the risk.
Friday, October 19, 2007 10:26 AM
So are they saying that Moser supplied all the rides, including ones not made by them, or am I reading it wrong? I mean it's not uncommon for ride manufacturers to have rides for sale from other companies.
Friday, October 19, 2007 11:50 AM
I don't really understand Moser's business. I mean, the way I understand it, they do make several of their own rides and broker others.
Friday, October 19, 2007 1:09 PM
This sounds a lot like the situation that lead to Chance's last reorganization. They had built some high end rides (for them) for a number of carnivals, which finanaced through a seperate lender. Well they all had a bad season, couldn't make the payments and the rides were reposessed. Now there was a clause in the finance contract that in the event that the borrowers defaulted Chance had to buy rides back from the lender. Chance didn't have the fluid assets to cover the buyback (and was apparently couldn't borrow the funds) and was forced into reorganization.
It's likely that they borrowed money to build the rides, and the money they received from the carnivals financer paid their bank off. So when they reposessed the rides the buyback clause kicked in. IMHO it's a real risky way to do business, but apparently not that unusual . I can recall off the top of my head that Chance has gone through reorganization at least three times in the last twenty five years. The European builders appear to do the same thing, witness Moser, Vekoma, Schwarzkopf ,et al.*** This post was edited by Dutchman 10/19/2007 1:52:59 PM ****** This post was edited by Dutchman 10/19/2007 2:37:21 PM ***
Saturday, October 20, 2007 12:39 AM
I just love this comment that was posted below the original article. (Copied "as is.")
"Posted by: justin Location: sedgwick
wild west world was just a joke to Park City an to some of the workers that was going to make a career working in a amusement park."
Wonder where this guy makes his career? Makes some of the Meadville people sound like PhD candidates.
Saturday, October 20, 2007 9:51 AM
I'm surprised 'amusement' was spelled correctly.
Sunday, October 21, 2007 2:48 AM
Seabreeze had the winning bid for the Musik Express.
Monday, October 22, 2007 1:09 AM
Moser eliminates the middle man by allowing parks to finance directly through them. They are able to offer better incentives, just like auto dealers do, such as buy two of our rides and will give you 0% interest on one. Its smart. Moser not only makes the money off the original sale but also the interest. To Moser's banks, on paper it looks like they have a humongous amount of income and assets, thus allowing them to grow and create more new rides. If a company that purchased through them bankrupts they get all that money back at once through bankruptcy claims, not only that, but they get the rides back as well and get to sell them through their used rides division. Where exactly does this not make any sense? Give them 5-10 years they will be just as big as Huss if not bigger.
Monday, October 22, 2007 9:16 AM
It's being reported that Herschend won the bid for the Sidewinder. Wonder where this ride might end up?
Tuesday, October 23, 2007 12:29 PM
^Hoping the Sidewinder goes to Wild Adventures....hoping I said... ;)