Six Flags Amusement Park files for bankruptcy
Six Flags Amusement Park, the popular theme park destination, has filed for bankfuptcy in Delaware, after failing to reach a decision with lenders to settle their debt out of court.
This is the latest U.S company to become unable to cope with their debt. Six Flags has $2.4 billion in debt with $300 million due to stockholders in August.
The company however is seeking court approval for a restructuring plan, which would mean $1.8 billion of their debt would be removed and the $300 million would not have to be paid.
“The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets,” Mark Shapiro, Six Flags’s chief executive, said in a statement. “As a result, we are cleaning up the past and positioning the Company for future growth.”
Thirty-seven of their subsidaries, such as Great Adventure Parks and Hurricane Harbour, have also sought court protection.
It is not known if filing for bankruptcy will affect attendance at the parks.
The filing is a blow to Dan Snyder, the owner of the Washington Redskins, who took control of Six Flags in 2005 after waging a proxy fight and holds about a 6 percent stake in the company.
Other investors include Bill Gates's Cascade Investment and hedge fund Renaissance Technologies.