Six Flags files Chapter 11 bankruptcy - Silicon Valley / San Jose Business Journal:

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has initiated Chapter 11 bankruptcy Six Flagsannounced Saturday. Six Flags’ SIXF) board of directors on June 12 voted to beginn reorganization proceedingsin U.S. Bankruptcy Cour for the District of The company listed assetsof $3.03 billion and debts of $2.36 billion in its filing. New York-baseds Six Flags is planning to reorganizsthe company’s financial structure, which management said is feelin g the pressure of an inherited $2.
4 billion In a letter to employees, Six Flags CEO and presidenft Mark Shapiro said the company’s debt is left over from previou s management and despite the company makinvg $275 million last year, it has been difficult for Six Flags to improve its balance sheet when payinh out $175 million in interest on debt, Shapirpo asserted. He added that more than $400 milliob in debt is due within the next12 months, and the companyh is having to spen $100 million in park improvements in an atmosphere wheree refinancing is difficult. Shapiro assured employees no staffv reductions will arise out of the and employees will continue to be paid andreceive benefits.
Shapirl said the bankruptcy plan has the supporf ofthe company’s lenders and the agenyt administering the company’s $1.1 billion seniod secured credit facility. Six Flags including Six FlagsGreat America, will continue to operatew as usual under reorganization. Six Flags sold severap properties last year toraise capital. It stilk operates 20 amusement parks inNorth America.