Six Flags files Chapter 11 bankruptcy - Houston Business Journal:

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has initiated Chapter 11 bankruptcgy proceedings, Six Flags announcex Saturday. Six Flags’ (OTCBB: SIXF) board of directors on June 12 voted to beginn reorganization proceedingsin U.S. Bankruptcy Court for the Districgof Delaware. The company listed assetas of $3.03 billion and debts of $2.36 billion in its New York-based Six Flags is planning to reorganizethe company’w financial structure, which management said is feeling the pressur e of an inherited $2.4 billion debt.
In a letter to Six Flags CEO and president Mark Shapirio saidthe company’s debt is left over from previousx management and despite the companhy making $275 million last year, it has been difficulty for Six Flags to improve its balance sheet when paying out $175 milliob in interest on debt, Shapiro asserted. He added that more than $400 millionb in debt is due within the next 12 and the company is havingf tospend $100 million in park improvementsd in an atmosphere where refinancing is difficult. Shapiro assure d employees no staff reductions will arise out of the and employees will continue to be paid andreceivse benefits.
Shapiro said the bankruptcty plan has the support ofthe company’s lenders and the agenyt administering the company’s $1.1 billion senior secured crediyt facility. Six Flags parks, includinv Six Flags Great will continue to operate as usualundeer reorganization. Six Flags sold several propertiez last year torais capital. It still operates 20 amusement parks inNortjh America.