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+--- Thread: Six Flags Great America files for bankruptcy (/showthread.php?tid=415)
Six Flags Great America files for bankruptcy - fedupinwaukegan - 06-13-2009
Placing this here in case you know someone that works there, has season tickets or...
Six Flags Great America files for bankruptcy
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June 13, 2009
BY KENDRICK MARSHALL <!-- e --><a href="mailto:kmarshall@scn1.com">kmarshall@scn1.com</a><!-- e -->
Saying it needs to slash a little more than a billion in debt, Six Flag Great America Corporation announced Saturday it has filed for Chapter 11 bankruptcy protection.
The plan would result in cutting the company's balance sheet by approximately $1.8 billion, as well as the elimination of more than $300 million in stocks.
Six Flags CEO Mark Shapiro said the venture will not likely affect the day-to-day operations of its North American or Mexican theme parks.
In connection with the filing, Six Flags is seeking approval from the bankruptcy court of its pre-negotiated plan of reorganization. The plan has unanimous support of the lenders' Steering Committee and the administrative agent for the company's $1.1 billion senior secured credit facility, Shapiro said.
"The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets," he said. "As a result, we are cleaning up the past and positioning the Company for future growth."
"No one should be confused about what a bankruptcy process means for Six Flags. We will emerge from this process stronger and more competitive than ever, he continued. "Following a record year of performance, which completed the three-year turnaround of our system-wide park operation, this action to clean up the balance sheet paves the way for a full revival of the company."
Gurnee Six Flags Great America spokesperson Brooke Gabbert said, Saturday's filing will not prevent the amusement park from functioning normally.
None of the 3,200 employees currently at Six Flags are in jeopardy of losing their jobs any time soon, officials said.
Park President Hank Salemi said the bankruptcy proceedings had been a long time coming after the company attempted for years to stay afloat under the siege of debt it acquired from previous ownership groups. Now that Six Flags will undergo reorganization efforts, it should allow the theme parks to provide better services to its visitors, Salemi said.
"2008 was a record year for us, and it was the first time in our history that we have been cash flow positive," he said. "We've opened Buccaneer Battle, our all-new interactive water adventure ride. We're launching new shows, hiring staff, adding days, expanding hours, giving families more options."
While some might view the theme park company filing for bankruptcy production as a step toward a closure in the not-too-distant future, Six Flags officials see the move as cementing its survival even through tough economic times.
"There will be no change at the local theme park," Gabbert said. "This is actually a positive because it allows us to be healthier company for years to come. We are planning to have our 50th anniversary celebration in 2011, and we plan to be here in the long run."
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