Not good:

http://news.moneycentral.msn.com/provider/...&id=8961428

Can you explain Interp?

Yep. Preferred stockholders are very close to being bondholders, and are, in effect, promised dividends. And in this case, Six Flags is NOT paying them the promised dividend. This is very close to a default, and a strong hint that bankruptcy could indeed be coming. Skipping a preferred dividend is very, very, very bad news.

Thanks Interp! Always can count on you .

Yep. Preferred stockholders are very close to being bondholders, and are, in effect, promised dividends. And in this case, Six Flags is NOT paying them the promised dividend. This is very close to a default, and a strong hint that bankruptcy could indeed be coming. Skipping a preferred dividend is very, very, very bad news.

And in many ways (if it doesn't backfire) can neatly wipe out a fairly large expense and provide some addition capital that is otherwise lost. Terpy knows I almost always side with optimism, if nothing else to add another side to a story. In this case, Six may very well have their first cash flow positive year of operation since inception, I think the Preferred holders will forget about their dividend if a cash flow positive year drives the creditors away and the stock price up.

I fail to see this as a last-breath attempt to breathe life into a struggling company. I see it more as a very calculated move to nudge out a little extra capital!

Very interesting perspective Cory. I hope you're right.

About which:

http://www.washingtoncitypaper.com/blogs/c...ix-flagging-31/