Six Flags on a Roller Coaster Ride to Bankruptcy

Posted By Amina Isakovic

Written By Nathan Olivarez-Giles

Six Flags Inc., which owns Magic Mountain in Valencia and 19 other theme parks, said Wednesday that it might need to file for Bankruptcy Court protection if the company can't restructure its debt by mid-August.

An overhaul of Six Flags' debt is highly uncertain, the New York-based company said in a regulatory filing, causing auditor KPMG to have significant doubt about the theme park company's ability to continue as a going concern.

At the center of its financial worries is an Aug. 15 deadline to pay $287.5 million to owners of Six Flags' Preferred Income Equity Redeemable Shares, the company said in its annual report filed with the Securities and Exchange Commission. The payout to preferred stockholders could run more than $318 million when accrued and unpaid dividends are factored in, the filing said.

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