White flag

15 June 2009 By Lauren Silva

The US amusement park group has gone bust. Sure, its subprime client base is hurting. But even during the boom it looked so overindebted and underprofitable that buyout firms didn t want it. There’s no magic fix for its Blist attractions, so cutting debt is the only hope.

This content is for Subscribers only

Context News

Six Flags has filed for Chapter 11 bankruptcy protection. The company is seeking expedited approval for its prenegotiated plan of reorganisation.

The restructuring, which has unanimous approval from its senior secured lenders, would result in cutting the company's debt by approximately $1.8bn, as well as eliminating $300m of mandatorily redeemable preferred stock obligations. Senior secured lenders with $1.1bn of debt will receive 90% of the equity, according to the Wall Street Journal.

The company had $176m in interest expense and paid $100m to make park improvements last year, it said in a letter to employees. It also had more than $400m of debt coming due in the next year which couldn't be refinanced. The company had $284m of earnings before interest, tax, depreciation and amortisation in 2008.

Context News

Six Flags has filed for Chapter 11 bankruptcy protection. The company is seeking expedited approval for its prenegotiated plan of reorganisation.

Email a friend

Please complete the form below.

Required fields *