Tech & Biz

Six Flags Amusement Park files for bankruptcy

by Amy Judd | June 13, 2009 at 10:57 am

919 views | 33 Recommendations | 5 comments

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.

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A. Tran

at 11:22 on June 13th, 2009

It's surprising that Six Flags Amusement Park has been operating without restructuring before running up such a high debt.

Mr. Cortes

at 16:45 on June 13th, 2009

MatrixRetoastet

at 01:07 on June 14th, 2009

Ohnein, wiso??

bitte nich, ich wollte da noch hin !

MatrixRetoastet has contributed a photo to this story.

kitkatkate

at 12:34 on June 14th, 2009

the Theme park rides video was funny. The kid will one day be on the telly.

That's a shame about Six Flags. Are they not affiliated with several theme parks. It seems to me there was one in Missourri. I'm assuming it's the whole group that is filing?