Six Flags files for bankruptcy
New York-based Six Flags Inc. today filed for bankruptcy protection, and is seeking an expedited approval of its pre-negotiated reorganization plan. The company plans to deleverage its balance sheet by roughly $1.8 billion, and has the support of both the lenders' steering committee and the administrative agent for the company's $1.1 billion senior secured credit facility. The restructuring plan will also eliminate over $300 million in redeemable preferred stock obligations.
Fortunately for park goers, the Chapter 11 filing will have no impact on the day-to-day operations of Six Flags' 20 parks in the United States, Mexico, and Canada. "This process is strictly a financial restructuring of our debt," Six Flags CEO Mark Shapiro said in a statement. Shares of Six Flags Inc. closed at 26 cents on Friday.
The company has recently been mired in financial trouble, with its shares being delisted from the New York Stock Exchange at the end of April, and Q1 financial results that were down across the board (although these results, like many other park operators', were affected by the moving of the Easter holiday from Q1 to Q2).