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Six Flags files Chapter 11 bankruptcy protection in Delaware court

2009-06-15 17:13:55 (GMT) (Caymanmama.com - Business News)

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Dallas, Texas (CaymanMama.com) — As the current state of the economy continues to find the nation’s companies in turmoil, a new company has been added to the list.

Six Flags filed for Chapter 11 bankruptcy protection in a Delaware court on Saturday, the company said in a statement.

New York-based Six Flags now plans to conduct a large overhaul of its financial structure, which the company said is being weighed down by an inherited $2.4 billion debt.

Addressing employees in a company-wide letter, Six Flags CEO and President Mark Shapiro said Six Flags’ debt is the remnants of the previous management and even though it made $275 million in 2008, it has been hard for the company to gain any ground when paying out $175 million in interest on debt, Shapiro said.

According to the Dallas Business Journal, “He added that more than $400 million in debt is due within the next 12 months, and the company is having to spend $100 million in park improvements in an atmosphere where refinancing is difficult.”

Shapiro assured workers that there will be no lay offs, and employees will continue to receive benefits in addition to their pay.

Shapiro said the bankruptcy filing was supported by Six Flags’ lenders and the agent administering the $1.1 billion senior secured credit facility.



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