By Dow Jones NewswiresPosted by Jen Lynch
Fitch Ratings said it would view Six Flags Inc.'s (SIX) plan to exchange debt for equity as a coercive debt exchange, leading the ratings agency to lower the company's issuer default rating to restricted default if the swap were completed.
If the proposed exchange by the debt-laden theme-park operator wasn't complete, Fitch said it would maintain its current rating as it continues to maintain that some form of default is "inevitable whether it is a different exchange offer or restructuring plan, a prepackaged bankruptcy or other proceeding within the bankruptcy court."
On Friday, the company said it would seek to exchange a chunk of its debt for equity, in a deal that would leave its existing stockholders with a 5% stake. Six Flags warned if the offering wasn't successful, it may have to pursue an out-of-court restructuring or Chapter 11 bankruptcy filing.
The world's largest regional theme-park operator, which owns and operates 30 family-oriented theme and water parks in the U.S., Europe and Latin America, has been riding its own financial roller-coaster in recent years. It was forced to sell seven parks and lower prices to keep business running in 2007. Since then, it has focused on luring families, selling noncore assets and signing exclusivity deals with vendors.
Click Here for Full Article
Fitch Ratings said it would view Six Flags Inc.'s (SIX) plan to exchange debt for equity as a coercive debt exchange, leading the ratings agency to lower the company's issuer default rating to restricted default if the swap were completed.
If the proposed exchange by the debt-laden theme-park operator wasn't complete, Fitch said it would maintain its current rating as it continues to maintain that some form of default is "inevitable whether it is a different exchange offer or restructuring plan, a prepackaged bankruptcy or other proceeding within the bankruptcy court."
On Friday, the company said it would seek to exchange a chunk of its debt for equity, in a deal that would leave its existing stockholders with a 5% stake. Six Flags warned if the offering wasn't successful, it may have to pursue an out-of-court restructuring or Chapter 11 bankruptcy filing.
The world's largest regional theme-park operator, which owns and operates 30 family-oriented theme and water parks in the U.S., Europe and Latin America, has been riding its own financial roller-coaster in recent years. It was forced to sell seven parks and lower prices to keep business running in 2007. Since then, it has focused on luring families, selling noncore assets and signing exclusivity deals with vendors.
Click Here for Full Article
No comments:
Post a Comment