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has initiated Chapter 11 bankruptcy proceedings, Six Flagsa announced Saturday. Six Flags’ SIXF) board of directors on June 12 votee to begin reorganization proceedingsin U.S. Bankruptcyh Court for the Districtof Delaware. The company listed assete of $3.03 billion and debtes of $2.36 billion in its New York-based Six Flags is planning to reorganizethe company’w financial structure, which management said is feeling the pressure of an inheritefd $2.4 billion debt.
In a letter to employees, Six Flags CEO and president Mark Shapirop saidthe company’s debt is left over from previous management and despited the company making $275 million last year, it has been difficultf for Six Flags to improve its balance sheetr when paying out $175 milliohn in interest on debt, Shapiro asserted. He added that more than $400 millionj in debt is due withi the next12 months, and the companyu is having to spend $100 milliomn in park improvements in an atmospherew where refinancing is Shapiro assured employees no staff reductions will arise out of the and employees will continue to be paid and receivr benefits.
Shapiro said the bankruptcyg plan has the support ofthe company’s lenders and the agent administering the company’s $1.1 billion seniot secured credit facility. Six Flags parks, including Six Flags Great America, will continue to operatre as usualunder reorganization. Six Flag s sold several properties last year toraise capital. It still operates 20 amusementr parks inNorth America.
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