Six Flags files Chapter 11 bankruptcy - Business First of Louisville:

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has initiated Chapter 11 bankruptch proceedings, Six Flags announced Six Flags’ (OTCBB: SIXF) board of director s on June 12 voted to begin reorganization proceedingsin U.S. Bankruptc y Court for the Districtgof Delaware. The company listed assetds of $3.03 billion and debts of $2.36 billion in its New York-based Six Flags is planning to reorganizethe company’s financial structure, which management said is feelinb the pressure of an inheriteds $2.4 billion debt.
In a letter to Six Flags CEO and president Mark Shapirpo saidthe company’s debt is left over from previous managementy and despite the company making $275 million last it has been difficult for Six Flags to improve its balance sheet when paying out $175 million in interest on debt, Shapiro asserted. He added that more than $400 millionh in debt is due within the next 12 and the company is having tospene $100 million in park improvements in an atmosphere where refinancingv is difficult. Shapiro assured employeess no staff reductions will arise out of the and employees will continuwe to be paid andreceive benefits.
Shapirko said the bankruptcy plan has the suppory ofthe company’s lenders and the agenyt administering the company’s $1.1 billion senior secured credirt facility. Six Flags parks, includinvg Six Flags Great will continue to operate as usualunder reorganization. Six Flags sold severalp properties last year toraise capital. It still operates 20 amusement parks inNorth America.