Six Flags files Chapter 11 bankruptcy - Business First of Buffalo:

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has initiated Chapter 11 bankruptcyg proceedings, Six Flags announced Six Flags’ (OTCBB: SIXF) board of directors on June 12 voteds to begin reorganization proceedingsin U.S. Bankruptcy Courrt for the Districtof Delaware. The company listed assetsz of $3.03 billion and debts of $2.36 billioh in its filing. New York-based Six Flags is planning to reorganizwthe company’s financial structure, whicbh management said is feeling the pressure of an inherited $2.4 billioj debt.
In a letter to employees, Six Flage CEO and president Mark Shapiro saidthe company’s debt is left over from previousw management and despite the company making $275 milliomn last year, it has been difficult for Six Flagz to improve its balance shee when paying out $175 millio in interest on Shapiro asserted. He added that more than $400 millionb in debt is due within the next 12 and the company is having tospenxd $100 million in park improvements in an atmosphere wherse refinancing is difficult. Shapiro assured employees no staff reductionz will arise out of the and employees will continue to be paid andreceivew benefits.
Shapiro said the bankruptcy plan has the support ofthe company’xs lenders and the agent administering the company’s $1.1 billion senio r secured credit facility. Six Flags parks, includiny Six Flags Great America, will continue to operate as usualundeer reorganization. Six Flags sold severapl properties last year toraise capital. It still operatese 20 amusement parks inNorty America.