The Interpreter Posted March 11, 2009 Share Posted March 11, 2009 ...the owner of a chain of 20 theme parks, said there is substantial doubt about its ability to continue as a “going concern” unless a successful restructuring occurs. The New York-based company has $287.5 million of Preferred Income Equity Redeemable Shares, or PIERS, plus accrued and unpaid dividends, due Aug. 15, it said today in a regulatory filing. “Given the current negative conditions in the economy generally and the credit markets in particular, there is substantial uncertainty that we will be able to effect a refinancing of our debt on or prior to maturity or the PIERS prior to their mandatory redemption date,” Six Flags said in the filing. The company may have to seek a pre-packaged or pre-arranged Chapter 11 filing if it can’t negotiate a restructuring agreement with the PIERS holders out of court, it said. That would likely happen “well in advance of” the PIERS maturity date, Six Flags added. KPMG LLP, the auditors, said there is “substantial doubt” about the company’s ability to continue as a “going concern,” Six Flags said in the filing. ... http://www.bloomberg.com/apps/news?pid=206...O4&refer=us Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted March 11, 2009 Share Posted March 11, 2009 Does this mean Six Flags could end up like Hard Rock Park and even be closed some? Then (at least part of) Six Flags may be sold to other companies? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 11, 2009 Author Share Posted March 11, 2009 This means, as I have said for some time now and the company is now admitting, absent a restructuring of debt, a change of ownership or an infusion of new capital, a bankruptcy is imminent in the near to mid-term future, certainly before mid-August. What happens in the short term is very murky, but apt to be thrilling or frightening, depending on from where one observes... Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted March 11, 2009 Share Posted March 11, 2009 Well, let's justg hope something good happens to the company, whether it is sold or not. It would be a shame for such a large company to go under and all or some of the parks be closed. As I have not been to a Six Flags park and I really would like to take a few days with my family and go to one of the parks in the next couple of years! Quote Link to comment Share on other sites More sharing options...
74Gibson Posted March 11, 2009 Share Posted March 11, 2009 I have more concerns about sustaining parks in general than Six Flags specifically. Quote Link to comment Share on other sites More sharing options...
westcoaster Posted March 12, 2009 Share Posted March 12, 2009 I for one love six flags ky kingdom evens is a great park for the family!!!! We hope for the best for this restructuring,,,,,,,, or whatever they do.. Quote Link to comment Share on other sites More sharing options...
LaShatelle Fountaine Posted March 12, 2009 Share Posted March 12, 2009 Six Flags ruined Marriots Great America (Chicago). Now as much as I'm into urban exploration, I don't want to see this park abandoned. On a side note, there were rats in the parking lot last summer, and they weren't hood rats OK! Quote Link to comment Share on other sites More sharing options...
italianchef Posted March 12, 2009 Share Posted March 12, 2009 I have had awesome experiences at Six Flags Great Adventure (NJ) and Six Flags Kentucky Kingdom. I hope that the busines can be saved. Quote Link to comment Share on other sites More sharing options...
Guest rcfreak339 Posted March 12, 2009 Share Posted March 12, 2009 I have had awesome experiences at Six Flags Great Adventure (NJ) and Six Flags Kentucky Kingdom. I hope that the busines can be saved. Yep, I prey SFKK won't close, It's my beloved park that was the birthplace of my love for Amusement Parks, and roller coasters... Quote Link to comment Share on other sites More sharing options...
jzarley Posted March 12, 2009 Share Posted March 12, 2009 This means, as I have said for some time now and the company is now admitting, absent a restructuring of debt, a change of ownership or an infusion of new capital, a bankruptcy is imminent in the near to mid-term future, certainly before mid-August. What happens in the short term is very murky, but apt to be thrilling or frightening, depending on from where one observes... Of course, a crystal ball wasn't exactly needed for this one In fact, I think the eventual failure of Six Flags was one of the few things everyone on this board has seemed to agree on at one time or another... (Well, that and the stupid placement in the park of "Stunt Track" or whatever generic name CF re-labeled it as...) Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 12, 2009 Author Share Posted March 12, 2009 I don't normally predict future events...I just interpret the evidence available and come to what I hope are logical conclusions. This one's been pretty evident for some time now, if not pretty. Quote Link to comment Share on other sites More sharing options...
RollerNut Posted March 12, 2009 Share Posted March 12, 2009 Question, what about the parks buying themselves(or part of) from Six Flags then leasing themselves(or the name) back to Six Flags? In a sense making a park in own company being managed by Six Flags Inc. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 12, 2009 Author Share Posted March 12, 2009 Well, to start with, Six Flags Over Georgia and Six Flags Over Texas are partnership parks, meaning there are certain outstanding ownership interests not owned by Six Flags. Second, with what would the other parks buy themselves? Money? Borrowed from where? Even Cedar Fair recently attempted to refinance, and was not successful. Both companies have put up substantially all their real property as collateral for their debts. If the individual parks (owned by the chains) could borrow money to buy themselves, then the chain could do likewise. And if the chain can't, the individual parks can't either....I believe you may be thinking of what is called a leveraged buy-out. In this economic environment, the creditors aren't going to sit still for such a thing. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 12, 2009 Author Share Posted March 12, 2009 Much more on this: http://www.reuters.com/article/bondsNews/i...259439420090312 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 13, 2009 Author Share Posted March 13, 2009 And more: ..."It is a good business with a bad balance sheet; what we have seen is that, surprisingly, they have held up relatively well given what is going on in the economy," said Christopher Snow, an analyst with the firm CreditSights. But in regards to their upcoming debt deadline, he said, "they have to come to some resolution." http://www.washingtonpost.com/wp-dyn/conte...ml?hpid=topnews Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 13, 2009 Author Share Posted March 13, 2009 Financial Woes Unlikely To Affect Great Adventure: ...Meantime, Aristone said Great Adventure is focusing on the season at hand. The company has spruced up its Medusa roller coaster ride by adding special effects such as fog, fire and onboard audio. And it hired Pyrotechnico, an award-winning fireworks company, to produce Saturday-night fireworks shows that Aristone likened to "fireworks on steroids." The park's opening day is April 4. http://www.app.com/article/20090312/NEWS/9...ONTPAGECAROUSEL Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 13, 2009 Author Share Posted March 13, 2009 Six Flags: The White Flag Is Next: http://seekingalpha.com/article/125924-six...xt?source=yahoo Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted March 13, 2009 Share Posted March 13, 2009 Six Flags: The White Flag Is Next: http://seekingalpha.com/article/125924-six...xt?source=yahoo "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. Pot, meet kettle. I thought that comment was completely unfair. Shapiro did everything he could to save the company, but it was essentially doomed from the start. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 14, 2009 Author Share Posted March 14, 2009 However, Messrs Shapiro and Snyder always took great fun in making fun of Mr. Gary Story for blaming the weather for poor results, and during the first year of the new management, they almost never mentioned weather during conference calls--and then only to point out that, unlike past management, they did not consider weather an excuse. Now, they realize weather is a driving factor behind performance, or lack thereof...everything from heat to cold to driving rains to hurricanes. It's always easier to criticize current management when you are on the outside. Past Six Flags management made many, many mistakes, but blaming the weather was not chief among them. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 14, 2009 Author Share Posted March 14, 2009 Six Flags In Negotiations To Stave Off Chapter 11: http://www.nytimes.com/2009/03/14/business/14flags.html This is a very good read. If you are a student of the theme park industry, finance or the economy, it is a must read. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted April 2, 2009 Author Share Posted April 2, 2009 ..."This is an economy that this generation has never seen, and value is more important than before," Shapiro said. "People are going to be staying closer to home. You need to make an impression to keep lifelong fans."... http://www.gazette.net/stories/04022009/bu...551_32470.shtml Quote Link to comment Share on other sites More sharing options...
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