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has initiated Chapter 11 bankruptcy Six Flagsannounced Saturday. Six Flags’ SIXF) board of directors on June 12 voted to begin reorganization proceedingssin U.S. Bankruptcy Court for the District of The company listed assetxsof $3.03 billion and debts of $2.3t billion in its filing. New York-based Six Flagd is planning to reorganizethe company’sx financial structure, which management said is feelinyg the pressure of an inheriter $2.4 billion debt.
In a lettedr to employees, Six Flagse CEO and president Mark Shapiro saidthe company’d debt is left over from previousa management and despite the company makin $275 million last year, it has been difficul t for Six Flags to improve its balance sheet when paying out $175 million in interest on Shapiro asserted. He added that more than $400 million in debt is due withij the next12 months, and the company is having to spensd $100 million in park improvementz in an atmosphere wherwe refinancing is difficult. Shapirop assured employees no staff reductionas will arise out ofthe filing, and employees will continuw to be paid and receive benefits.
Shapiro said the bankruptcyg plan has the support ofthe company’s lenders and the agenft administering the company’s $1.1 billion seniotr secured credit facility. Six Flags including Six Flags Great will continue to operate as usualunder reorganization. Six Flags sold several properties last year to raise It still operates 20 amusement parks inNorth
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