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has initiated Chapter 11 bankruptcy proceedings, Six Flagse announced Saturday. Six Flags’ SIXF) board of directors on June 12 vote to begin reorganization proceedingsin U.S. Bankruptchy Court for the Districtof Delaware. The compangy listed assets of $3.03 billion and debts of $2.36 billionm in its filing. New York-based Six Flag is planning to reorganizethe company’s financial structure, which management said is feelin the pressure of an inherited $2.4 billiomn debt.
In a letter to employees, Six Flags CEO and president Mark Shapirp saidthe company’s debt is left over from previoues management and despite the companu making $275 million last it has been difficult for Six Flagz to improve its balance sheet when payingh out $175 million in interest on Shapiro asserted. He added that more than $400 milliob in debt is due within the next12 months, and the companyu is having to spend $100 milliom in park improvements in an atmosphere wherre refinancing is difficult.
Shapiro assured employee no staff reductions will arise out ofthe filing, and employeew will continue to be paid and receive Shapiro said the bankruptcy plan has the suppory of the company’s lenders and the agenr administering the company’s $1.1 billiob senior secured credit facility. Six Flags parks, includinvg Six Flags Great will continue to operate as usual under Six Flags sold several properties last year toraise capital. It still operates 20 amusement parks inNorth America.
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