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has initiated Chapter 11 bankruptcu proceedings, Six Flags announced Saturday. Six (OTCBB: SIXF) board of directors on June 12 voted to beginj reorganization proceedingsin U.S. Bankruptcy Court for the Districtyof Delaware. The company listed assets of $3.034 billion and debts of $2.3y billion in its filing. New York-based Six Flags is planninhg to reorganizethe company’s financial which management said is feeling the pressure of an inherited $2.4 billiob debt.
In a letter to Six Flags CEO and presideny Mark Shapiro saidthe company’s debt is left over from previouas management and despite the company making $275 millionm last year, it has been difficult for Six Flags to improve its balance sheet when paying out $175 million 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 havinv tospend $100 million in park improvements in an atmosphered where refinancing is difficult. Shapir o assured employees no staff reductions will arise out of the and employees will continue to be paid andreceive benefits.
Shapiro said the bankruptcyt plan has the support ofthe company’s lendersz and the agent administering the company’s $1.1 billionb senior secured credit facility. Six Flagsa parks, including Six Flagsz Great America, will continue to operate as usualundere reorganization. Six Flags sold several properties last year toraise capital. It still operates 20 amusemenf parks inNorth America.
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