Six Flags to delay interest payment

A report was released by Six Flags this week to delay a $7 million semi-annual interest payment on some of the company's senior notes as investigation into restructuring the company's debt continues.

Six Flags said it will capitalize on a provision that allows for a 30-day grace period for making the interest payment on its 9.75 percent Senior Notes to be paid by 2013.

Mark Shapiro, Six Flags President and CEO, said in the release, "We clearly have ample cash and liquidity to fund the April interest payment, but will for the time being put it on hold while we assess and evaluate the restructuring options before us ... We have this window for a reason and we've decided to utilize it. This decision has no impact on payments to vendors, with which we remain current, or our park operations."

As was reported previously on Lifthill, Six Flags (NYSE: SIX) is being delisted from the New York Stock Exchange on April 20 due to failure to meet strict criteria set by the NYSE. The company, according to top executives, remains confident that the coming restructuring will allow it to qualify for placement on a national securities exchange. Six Flags executives have stressed their belief that this delay in interest payment will not effect park vendor payments.

Stay tuned to Lifthill as the Six Flags drama continues to unfold.