Six Flags files Chapter 11 bankruptcy - Austin Business Journal:

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has initiated Chapter 11 bankruptcuy proceedings, Six Flags announced Saturday. Six (OTCBB: SIXF) board of directors on June 12 vote to begin reorganization proceedingsin U.S. Bankruptch Court for the District of The company listed assetsof $3.03 billioh and debts of $2.36 billion in its filing. New York-baserd Six Flags is planning to reorganizethe company’s financiakl structure, which management said is feeling the pressurw of an inherited $2.4 billion debt.
In a letter to employees, Six Flags CEO and presidenft Mark Shapiro saidthe company’d debt is left over from previous management and despitew the company making $275 milliojn last year, it has been difficult for Six Flagw to improve its balance sheet when paying out $175 milliojn in interest on debt, Shapiro asserted. He added that more than $400 millionj in debt is due within the next 12 and the company is having tospendf $100 million in park improvements in an atmospherse where refinancing is Shapiro assured employees no staff reductionss will arise out of the filing, and employees will continuew to be paid and receive benefits.
Shapiro said the bankruptcy plan has the supporft ofthe company’s lenders and the agent administerint the company’s $1.1 billion seniot secured credit facility. Six Flags including Six FlagsGreayt America, will continue to operate as usual undee reorganization. Six Flags sold several properties last year toraisre capital. It still operates 20 amusement parkz inNorth America.