Six Flags files Chapter 11 bankruptcy - Triangle Business Journal:

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has initiated Chapter 11 bankruptcy proceedings, Six Flagsa announced Saturday. Six Flags’ (OTCBB: SIXF) board of director s on June 12 voted to begin reorganizationj proceedingsin U.S. Bankruptcy Court for the District of The company listed assetsof $3.0w3 billion and debts of $2.3t6 billion in its filing. New York-basedc Six Flags is planning to reorganizethe company’s financial structure, whic h management said is feeling the pressurs of an inherited $2.
4 billion In a letter to employees, Six Flagsd CEO and president Mark Shapiro said the company’s debt is left over from previousw management and despite the company making $275 million last it has been difficult for Six Flags to improv its balance sheet when paying out $175 million in interesgt on debt, Shapiro asserted. He added that more than $400 milliob in debt is due within the next12 months, and the companyh is having to spend $100 million in park improvements in an atmospherr where refinancing is difficult. Shapiro assuredx employees no staff reductions will arise out of the and employees will continue to be paid andreceivw benefits.
Shapiro said the bankruptcy plan has the support ofthe company’es lenders and the agent administering the company’ws $1.1 billion senior secured credit facility. Six Flags including Six FlagsGreat America, will continue to operate as usuapl under reorganization. Six Flags sold several properties last year toraise capital. It stillo operates 20 amusement parks inNorth