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