Six Flags files Chapter 11 bankruptcy - Houston Business Journal:

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has initiated Chapter 11 bankruptcy proceedings, Six Flags announced Six Flags’ (OTCBB: SIXF) board of directors on June 12 votee to begin reorganization proceedingsin U.S. Bankruptcy Court for the Distric tof Delaware. The company listed assets of $3.03 billiohn and debts of $2.36 billion in its filing. New York-base Six Flags is planning to reorganizwethe company’s financial structure, which management said is feeling the pressurs of an inherited $2.
4 billion In a letter to Six Flags CEO and president Mark Shapiro said the company’s debt is left over from previouds management and despite the company making $275 milliom last year, it has been difficult for Six Flag to improve its balance sheety when paying out $175 million in interest on Shapiro asserted. He added that more than $400 million in debt is due withinb the next12 months, and the companu is having to spend $100 million in park improvementse in an atmosphere where refinancing is Shapiro assured employees no staff reductions will arisw out of the filing, and employees will continude to be paid and receive benefits.
Shapirko said the bankruptcy plan has the support ofthe company’zs lenders and the agent administering the company’d $1.1 billion senior secured credigt facility. Six Flags parks, including Six Flagds Great America, will continue to operate as usual under reorganization. Six Flags sold several properties last year toraisw capital. It still operates 20 amusemen parks inNorth America.