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The Interpreter

SIX FLAGS BANKRUPTCY: MOST RECENT DEVELOPMENTS

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Six Flags Creditors Near Financing Alternative Deal:

... The plan would pay in cash claims against Six Flags Amusement Park, said the bondholders, known as SFI noteholders.

These bondholders have opposed the plan proposed by senior bondholders, or SFO noteholders, and adopted by the company.

The SFI noteholders said the senior bondholders "refused to negotiate and are trying to acquire the company at a substantial discount in order to wrongfully cutoff the interests of the SFI notes."...

http://www.reuters.c...520674820100226

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Six Flags Current Management May Be Ousted:

...Six Flags Incumbent Management May Be on the Way Out

Incumbent management of Six Flags Inc. evidently will lose their jobs if holding company noteholders succeed in taking over the theme-park operator by winning confirmation of their competing reorganization plan....

The noteholders’ statement said they have identified a “highly experienced, industry leading management team” to take over once their plan is approved and implemented....

The contested confirmation hearing is scheduled to begin March 8....

http://www.businessweek.com/news/2010-03-01/general-growth-six-flags-visteon-magna-flying-j-bankruptcy.html

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Would ousting the current Six Flags management be in the best interest of the company? I mean they were successful in making the company cash flow positive and turning the company around. Arguably, it was too little too late to save the company from bankruptcy, but ousting them? The Six Flags bankruptcy process certainly has been anything but smooth sailing.

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I've been to 3 Six Flag Parks, and I gotta say I wasn't impressed what so ever! We visited St.Louis last year and was very let down, we went twice once in the summer and then durring Halloween. Attendance both times was poor, and the park was very untidy. We thought we was in a ghetto LOL I mean sure Mr.Freeze is good and all but it still didn't do justice, so we won't visit any other Six Flags again.

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Showdown Begins Today In Two Week Trial In Bankruptcy Court; Snyder will NOT Testify:

http://www.reuters.c...817013920100308

However, some of the debt that sunk the company was incurred to build bigger and better attractions and roller coasters, which now will protect the company from potential competition.
Emphasis added.

I do not agree with this statement at all, and am somewhat surprised to see this stance taken in a Reuters article. It makes me wonder aloud how well the author knows the industry of if he just went off someone else's argument that he overheard.

Six Flags is not Disney World, the attractions do not have the same staying power some 5-10 years after they are built (aside from a few standouts), as they aren't attached to some other marketing vehicle or multimedia property. Not to mention, as The Interpreter and others including myself have stated here time and time again, the parks are not directly competitive with each other, they are competitive with other media, the roller coaster arms race is in the past at least temporarily. There is a reason these theme parks are known as "regional".

My worry is that some of these noteholders and bondholders fighting over Six Flags ownership, have this same line of thought, and I hope they don't. These parks will STILL have to have large amounts of Cap Ex to continually attract customers as they get bored with the same old multimillion dollar attractions.

In the past I have been one to say that I thought Six Flags would stave off bankruptcy, and then they didn't, I was wrong. I have since looked further into their debts and operational achievements or lack thereof and they nearly doubled their loss this year. Even after bankruptcy this company does not seem to have a sound direction, they have SO much work to do.

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The Wall Street Journal, in an article which requires a subscription, is claiming that Six Flags creditors suspect Six Flags senior management and Avenue Capital have a plan to merge with Cedar Fair post bankruptcy, and that Apollo Management would be a source of financing....A Cedar Fair spokesperson declined to comment, as has Avenue Capital, Six Flags' senior management's financial backer...

A short quote, which can be considered "fair use":

...Creditors of Six Flags speculate differently. They suspect investors led by Avenue plan to merge Six Flags with Cedar Fair once they gain control of the company in bankruptcy. Besides Avenue's pilgrimage to Sandusky, Ohio, they point to an email that indicated Six Flags' backers were eyeing Apollo Management LP as a potential source of investment....

A link cannot be provided, but if you are a subscriber, you can easily locate this article.

NOTE: See particularly wise post 43, above, in this thread....

http://www.KICentral.com/forums/index.php?showtopic=20237&view=findpost&p=366538

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The Wall Street Journal, in an article which requires a subscription, is claiming that Six Flags creditors suspect Six Flags senior management and Avenue Capital have a plan to merge with Cedar Fair post bankruptcy, and that Apollo Management would be a source of financing....A Cedar Fair spokesperson declined to comment, as has Avenue Capital, Six Flags' senior management's financial backer...

A short quote, which can be considered "fair use":

...Creditors of Six Flags speculate differently. They suspect investors led by Avenue plan to merge Six Flags with Cedar Fair once they gain control of the company in bankruptcy. Besides Avenue's pilgrimage to Sandusky, Ohio, they point to an email that indicated Six Flags' backers were eyeing Apollo Management LP as a potential source of investment....

A link cannot be provided, but if you are a subscriber, you can easily locate this article.

NOTE: See particularly wise post 43, above, in this thread....

http://www.KICentral.com/forums/index.php?showtopic=20237&view=findpost&p=366538

SFI merging with CF? that would be financially suicidal seeing as how SFI's aqquisition of too many properties too soon is partly to blame for them being in this mess.Besides after CF investors got burned on the whole SFWOA/GL purchase (and it's subsequent failure) it's fairly safe believe that niether CF or their investors would want to do business with SFI ever again.

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The entire story can be found without a subscription. Googled it in Crome, it was the first story and opened right up.

Let me know if you are interested and need any help finding it. I did and posted it but it has since been removed, so I will not post it again.

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