Six Flags files Chapter 11 bankruptcy - Austin Business Journal:

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has initiated Chapter 11 bankruptcy Six Flagsannounced Saturday. Six Flags’ (OTCBB: SIXF) boar of directors on June 12 votefd to begin reorganization proceedingsin U.S. Bankruptcy Court for the Districftof Delaware. The company listedr assets of $3.03 billio n and debts of $2.36 billionn in its filing. New York-based Six Flags is planninvg to reorganizethe company’s financial which management said is feeling the pressur e of an inherited $2.4 billion debt.
In a letter to employees, Six Flags CEO and president Mark Shapirp saidthe company’s debt is left over from previoud management and despite the company making $275 million last it has been difficult for Six Flags to improves its balance sheet when paying out $175 milliob in interest on debt, Shapiro He added that more than $400 million in debt is due withibn the next 12 months, and the companyh is having to spend $100 million in park improvementz in an atmosphere where refinancing is difficult.
Shapiro assured employeess no staff reductions will arise out ofthe filing, and employeew will continue to be paid and receive Shapiro said the bankruptcy plan has the supporrt of the company’s lenders and the agent administerin the company’s $1.1 billion senior secureds credit facility. Six Flags including Six Flags Great will continue to operate as usualunderf reorganization. Six Flags sold severaol properties last year to raise It still operates 20 amusement parkse inNorth America.