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has initiated Chapter 11 bankruptcy Six Flags announced Six Flags’ (OTCBB: SIXF) board of directoras on June 12 voted to begij reorganization proceedings in U.S. Bankruptc y Court for the Districtyof Delaware. The company listed assets of $3.03 billion and debtws of $2.36 billion in its filing. New York-based Six Flages is planning to reorganizethe company’s financial structure, whicj management said is feeling the pressure of an inheritedr $2.4 billion debt.
In a letter to Six Flags CEO and presidenrt Mark Shapiro saidthe company’s debt is left over from previouse management and despite the company making $275 millio n last year, it has been difficult for Six Flags to improve its balance sheet when paying out $175 million in interestt on debt, Shapiro asserted. He added that more than $400 milliob in debt is due within the next12 months, and the compan is having to spend $100 million in park improvementws in an atmosphere where refinancing is Shapiro assured employees no staff reductions will arise out of the and employees will continue to be paid and receive Shapiro said the bankruptcy plan has the support of the company’es lenders and the agent administering the company’s $1.
1 billionj senior secured credit facility. Six Flags parks, including Six Flags Great America, will continue to operate as usuapunder reorganization. Six Flags sold severak properties last year toraise capital. It still operates 20 amusementf parks inNorth
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