Six Flags Files for Bankruptcy as Visitors to Parks Dwindle
By Steven Church and Dan Hart
June 13 (Bloomberg) -- Six Flags Inc., the owner of 20 theme parks, sought bankruptcy protection 3 1/2 years after Washington Redskins owner Daniel Snyder become chairman and hired new managers in an attempt to return it to profitability.
The New York-based company, which said in a statement that it had debt of $2.4 billion, filed a Chapter 11 petition today in U.S. Bankruptcy Court in Delaware.
Snyder began a shakeup of Six Flags in late 2005 after winning three seats on the board. The 48-year-old company hasn’t posted an annual profit since 1998 and posted losses of $558.8 million in the two years after Snyder became chairman.
Six Flags shares have fallen 86 percent in the past 12 months as investors have grown skeptical about the company’s ability to refinance preferred income equity redeemable shares, or PIERS, before their August redemption date.
The company is seeking court approval of a prearranged reorganization plan that will cut its debt by about $1.8 billion and eliminate more than $300 million worth of preferred stock obligations, Six Flags said in a statement.
The debt-for-equity exchange offers have ended since the company filed for bankruptcy, Six Flags said in the statement.
Six Flags had $79.4 million in cash and $2.31 billion in long-term debt as of March 31, according to its first-quarter financial statement.
Spokeswoman Sandra Daniels didn’t immediately respond to a voice mail left by Bloomberg News seeking comment.
To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net; Dan Hart in Washington at dahart@bloomberg.net.
Last Updated: June 13, 2009 11:42 EDT
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