Wednesday, September 30, 2009

Six Flags Goes Bankrupt


Six Flags attracts over 25 million visitors a year to its 120 roller coasters and other attractions, yet even with these numbers the company is not doing well. Just this past June Six Flags filed for Chapter 11 bankruptcy protection. More recently, the CFO Jeff Speed announced that it will take 4 to 6 months for the full reorganization of the company to occur. Six Flags was listing assets of $3 billion and debt of $2.4 billion as of December 31. They are seeking court approval of a prearranged reorganization plan to cut its debt by about $1.8 billion and to eliminate more than $300 million in preferred stock obligations, the company said in a statement. Their shares have also dropped by 98 percent since November 22nd 2005. Six Flags was delisted from the New York Stock Exchange in April.


As a result of all this turmoil, the company plans to discount passes for 2010 in order to counteract the suffering economy. They’ve announced that their newest attraction next season, the Tornado, will be a 60-foot funnel-shaped water ride that will be part of Hurricane Harbor Water Park. Their other rides will continue to attract their customers.

http://www.bloomberg.com/apps/news?pid=20601103&sid=atNAcbVRbTjE
http://online.wsj.com/article/SB124489639859012503.html
http://www.huffingtonpost.com/2009/03/14/six-flags-nearing-bankrup_n_174954.html
By: Kelsey Hoffman

5 comments:

  1. This is really interesting. You would never think what looked like such a successful company could be hurt so bad. However, whe the economy went bad it makes sense like trips to the water park would be the first thing to give up. Nice work.
    Posted By, Meredith Anderson

    ReplyDelete
  2. Man thats crazy, six flags is the best. there's no way that six flags can go bankrupt

    ReplyDelete
  3. omg dude who new i love six flags bankrupt but omg why this

    ReplyDelete
  4. Thank you for the good writeup. It in truth was once a entertainment account it.

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