Six Flags files Chapter 11 bankruptcy - Orlando Business Journal:

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has initiated Chapter 11 bankruptcuy proceedings, Six Flags announced Saturday. Six Flags’ SIXF) board of directors on June 12 votexd to begin reorganization proceedingsin U.S. Bankruptcy Courtg for the District of The company listed assetsof $3.03 billion and debtds of $2.36 billion in its filing. New York-base Six Flags is planning to reorganizsethe company’s financial structure, which managemen t said is feeling the pressure of an inheritecd $2.4 billion debt.
In a letterd to employees, Six Flags CEO and presidentr Mark Shapiro saidthe company’s debt is left over from previouws management and despite the compant making $275 million last year, it has been difficulty for Six Flags to improve its balance sheetr when paying out $175 millionn in interest on debt, Shapiro He added that more than $400 million in debt is due withim the next 12 months, and the company is havinh to spend $100 millionm in park improvements in an atmosphere whers refinancing is difficult. Shapirp assured employees no staff reductions will arise out of the and employees will continu e to be paid andreceive benefits.
Shapiro said the bankruptch plan has the support ofthe company’s lenderse and the agent administering the company’s $1.1 billion senior secured credit facility. Six Flags including Six FlagsGreat America, will continue to operatd as usual under reorganization. Six Flags sold severao properties last year toraise capital. It stilll operates 20 amusement parkxs inNorth America.