Downhill at Six Flags

[marmar]

from Wall Street Journal:



MARCH 12, 2009, 8:17 P.M. ET
Six Flags Braces for a Dive
Theme-Park Firm Seeks Help Dodging a Chapter 11 Filing, but Concedes It Could Fail

By JEFFREY MCCRACKEN


Six Flags Inc., one of the nation's largest amusement-park companies, has hired bankruptcy counsel and financial advisers as it fights to avoid a bankruptcy filing amid a mountain of debt.

The company, which has 120 roller coasters and more than 25 million visitors a year, is trying to negotiate with creditors so it can avoid seeking protection under Chapter 11 of the U.S. Bankruptcy Code. But, according to a securities filing, it "may be compelled to seek an in-court solution in the form of a prepackaged or prearranged filing."

"Our creditors are very supportive, but obviously there are issues we need to address," said Six Flags Chief Financial Officer Jeff Speed in an interview.

"We are trying to accomplish something on a consensual basis," added Mr. Speed, who confirmed the hiring of the advisers. "That is always preferred, but I can't speculate on what the ultimate resolution will be."

A bankruptcy filing would likely wipe out the ownership stake of Washington Redskins owner Daniel Snyder, who took control of Six Flags in a public and contentious proxy fight in late 2005 and then brought in his own management team.

"Stockholders would have been better off hiding their money under a mattress" than investing in the company under the prior management, Mr. Snyder wrote in a letter to Six Flag shareholders in October 2005, during the proxy battle. At the time, Six Flags shares were trading at about $7.25. Thursday, they closed at 19 cents on the New York Stock Exchange. ........(more)

The complete piece is at: http://online.wsj.com/article/SB123690270788513649.html?mod=rss_whats_news_us_business

[jobycom]

1. And I thought he just screwed up Washington's NFL team.

[Gman]

2. "We are trying to accomplish something on a consensual basis"

Sounds like what every guy tries to do on a Friday night.

[givemebackmycountry]

3. Wow! All I have to say is.....

Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!!!!!!!!!!!!!!!!!!!!!!!

[rainbow4321]

4. Now wonder why they fought so hard to sell alcohol at their Dallas area site

It's in Arlington, actually...guess the "under drinking age" attendence isn't keeping them afloat. Their request was approved, BTW.
Doesn't totally surprise me. I have a teen daughter and I've never heard she and her friend ask to go off to Six Flags for a day except maybe twice in 5 years. There's too much else for kids to do nowadays than hang out at Six Flags/stand in line/pay out the wazzoo for food, etc..

[MrsBrady]

5. Don't you know the folks in Arlington

are going to be left with that ghost town of a monstrosity on I-30,

and now also stuck with the new and "wonderful" Cowboys Stadium.

What a strange dichotomy.