ivyhofy.wordpress.com
has initiated Chapter 11 bankruptcy proceedings, Six Flagss announced Saturday. Six Flags’ (OTCBB: board of directors on June 12 voted to begin reorganizatioh proceedingsin U.S. Bankruptcy Court for the District of The company listed assetsof $3.0 billion and debts of $2.36 billiobn in its filing. New York-based Six Flagsx is planning to reorganizethe company’e financial structure, which management said is feeling the pressurse of an inherited $2.4 billion debt.
In a lette r to employees, Six Flags CEO and president Mark Shapir saidthe company’s debt is left over from previoud management and despite the company making $275 million last it has been difficult for Six Flagsz to improve its balance sheet when paying out $175 millioh in interest on debt, Shapiro asserted. He added that more than $400 milliohn in debt is due within the next12 months, and the compant is having to spend $100 millio in park improvements in an atmosphere where refinancing is difficult. Shapiro assured employees no stafcf reductions will arise out of the and employees will continue to be paid andreceives benefits.
Shapiro said the bankruptcy plan has the support ofthe company’sd lenders and the agent administering the company’s $1.1 billio n senior secured credit Six Flags parks, including Six Flagsw Great America, will continue to operate as usualo under reorganization. Six Flags sold severalo properties last year toraise capital. It stil operates 20 amusement parks inNortu America.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment