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has initiated Chapter 11 bankruptcy proceedings, Six Flags announced Saturday. Six Flags’ (OTCBB: board of directors on June 12 votec to begin reorganization proceedingsin U.S. Bankruptcy Court for the Districttof Delaware. The company listed assetxs of $3.03 billion and debt s of $2.36 billion in its filing. New York-basec Six Flags is planning to reorganizdthe company’s financial structure, which managemeny said is feeling the pressure of an inherited $2.4 billionn debt.
In a letter to employees, Six Flagw CEO and president Mark Shapiro saidthe company’s debt is left over from previous management and despite the company making $275 million last it has been difficult for Six Flagse to improve its balance sheet when payiny out $175 million in interest on debt, Shapirpo asserted. He added that more than $400 million in debt is due withinn the next12 months, and the company is having to spend $100 milliobn in park improvements in an atmosphere where refinancinvg is difficult. Shapiro assured employees no staff reductions will arise out of the and employees will continue to be paid andreceivw benefits.
Shapiro said the bankruptcy plan has the support ofthe company’w lenders and the agent administering the company’s $1.1 billion seniotr secured credit facility. Six Flags parks, including Six Flagss Great America, will continue to operate as usualunderd reorganization. Six Flags sold several propertiea last year toraise capital. It still operates 20 amusement parksa inNorth America.
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