The Interpreter Posted June 13, 2009 Share Posted June 13, 2009 Six Flags Enters Final Phase of Financial Restructuring NEW YORK--(BUSINESS WIRE)--Six Flags, Inc. (OTCBB: SIXF) and certain of its subsidiaries ("Six Flags" or the "Company") announced today that they have begun reorganization proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. In connection with the filing, Six Flags is seeking expedited approval from the Bankruptcy Court of its pre-negotiated plan of reorganization. The plan has unanimous support of the lenders' Steering Committee and the Administrative Agent for the Company's $1.1 billion senior secured credit facility. This support is evidenced by executed lock-up agreements. The plan would result in a deleveraging of the Company's balance sheet by approximately $1.8 billion, as well as the elimination of more than $300 million in mandatorily redeemable preferred stock obligations. The filing marks the final step in Six Flags' ongoing efforts to restructure its debt obligations and position the Company for long-term success. "The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets," said Mark Shapiro, President and CEO of Six Flags. "As a result, we are cleaning up the past and positioning the Company for future growth." "No one should be confused about what a bankruptcy process means for Six Flags. Following a record year of performance in 2008, which completed the three-year turnaround of our system-wide park operation, this action to clean up the balance sheet paves the way for a full revival of the company. We will emerge from this process stronger and more competitive than ever. " Shapiro emphasized that the Chapter 11 filing will have no impact on day-to-day park operations. "Our brand and our operations are on solid ground. This process is strictly a financial restructuring of our debt. We are fully committed to ensuring that the experience of our guests this summer is totally unaffected by this restructuring process. During this period we will work even more closely with our vendors, suppliers and employees to deliver the same friendly, clean, fast, safe service our guests have come to expect from the new Six Flags. I remain thankful for the steadfast support of our employees and other stakeholders throughout this entire process, and I am confident in our ability to expand and pursue new opportunities for the Six Flags brand once our balance sheet is healthy. More than ever, consumers are gravitating toward experiences they know and trust. Six Flags has been a favorite family destination for almost a half century. Our financial reorganization will best position our parks to entertain millions of guests for another 50 years." By virtue of the filing and the failure to meet the minimum tender condition, Six Flags' exchange offers have terminated. About Six Flags Six Flags, Inc. is a publicly-traded corporation headquartered in New York City and is the world's largest regional theme park company with 20 parks across the United States, Mexico and Canada. Forward Looking Statements: The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, Six Flags' success in implementing a restructuring plan and the adequacy of cash flows from operations, available cash and available amounts under its credit facility to meet its future liquidity needs. Although Six Flags believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including the failure to successfully consummate a restructuring and factors impacting attendance, local conditions, events, disturbances and terrorist activities, risk of accidents occurring at Six Flags' parks, adverse weather conditions, general financial and credit market conditions, economic conditions (including consumer spending patterns), competition, pending, threatened or future legal proceedings and other factors could cause actual results to differ materially from Six Flags' expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Six Flags' Annual Report on Form 10-K for the year ended December 31, 2008, its Preliminary Proxy Statement for its 2009 Annual Meeting, and its other filings and submissions with the Securities and Exchange Commission, which are available free of charge on Six Flags' website http://www.sixflags.com. Rather, uh, interesting headline they chose to put on their press release, no? http://www.businesswire.com/portal/site/go...amp;newsLang=en Quote Link to comment Share on other sites More sharing options...
Diamondback96 Posted June 13, 2009 Share Posted June 13, 2009 Okay, which topic do I post on? Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted June 13, 2009 Share Posted June 13, 2009 I closed the other topic, since it did not have a link to the official press release. Interesting that they don`t mention the B word in the headline of their press release. Its as if they are trying to make it sound like this filing was part of their original plan to turn the company around all along. That, or they don`t want to scare off potential customers who might not want to go to an amusement park where the parent company is undergoing Chapter 11 reorganization. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 13, 2009 Author Share Posted June 13, 2009 More interesting...press representatives received an email early this morning titled only: Six Flags In The News. In it was the press release. At 4a.m. Eastern Time on a Saturday. Is there a time more apt to receive less attention? Or a more innocuous sounding title? Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted June 13, 2009 Share Posted June 13, 2009 Hmm. Interesting. Quote Link to comment Share on other sites More sharing options...
Zorba Posted June 13, 2009 Share Posted June 13, 2009 ^^ Everyone knows that you release bad news late on a Friday night, I guess SIX took that to the extreme here Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 14, 2009 Share Posted June 14, 2009 This is something that i have seen coming for quite sometime. It wouldnt surprise me if they sold a few parks to releave some debt. Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted June 14, 2009 Share Posted June 14, 2009 Yes. But who would buy some parks from SIX? Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted June 14, 2009 Share Posted June 14, 2009 Actually, the bankruptcy itself (or final phase of financial restructuring) releives much of the debt load (deleveraging of the Company's balance sheet by approximately $1.8 billion) is the way that was written. What this looks like to me is actually a good chance for Six Flags to regroup and come out stronger. Those who get hurt are the debt holders and likely many many small suppliers to Six Flags who will not be getting what's due them. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted June 14, 2009 Share Posted June 14, 2009 Actually, I believe that all suppliers will be paid in full. The $1.8 billion dollars in debt is being exchanged for equity. This means that the real losers are the stock holders of SIX. Their shares will be worth less. Granted, I think its safe to say that any one who had some serious money in Six Flags stock removed their money quite some time ago. Quote Link to comment Share on other sites More sharing options...
Zorba Posted June 14, 2009 Share Posted June 14, 2009 Yeah, the bond holders might come out okay in the end with the huge amount of shares they'll be receiving, if SIX comes out of this as a strong company. Share holders are always the most screwed by a bankruptcy. Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 14, 2009 Share Posted June 14, 2009 Im not sure if this matters, but if they can find ways of saving money on things like gas, electric and water then that could also help in a very small way. A few water parks have went as far as getting into a thing that they would just reuse the water they bring into the waterparks. One waterpark uses the water from a river or lake and filters it before they use it. And just put it back into the river or lake without harming the river or lake. Quote Link to comment Share on other sites More sharing options...
Guest rcfreak339 Posted June 14, 2009 Share Posted June 14, 2009 Could CF buy Six Flags Kentucky Kingdom and do the same thing that they did with Geauga Lake? I mean it, is it possible? Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 14, 2009 Share Posted June 14, 2009 Six Flags Kentucky Kingdom has its own problems. CF wont be buying any parks anytime soon. CF is still trying to see about selling off Valleyfair and another park. But i havent heard anything else about that though. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted June 14, 2009 Share Posted June 14, 2009 That "other" park would be Worlds of Fun in Kansas City. Not to mention they may end up selling the assets of Great America, depending whatever happens with the 49ers stadium. CF owns a lease to the land and the parking lots, and does not actually own the land that the park sits on. Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 14, 2009 Share Posted June 14, 2009 That "other" park would be Worlds of Fun in Kansas City. Not to mention they may end up selling the assets of Great America, depending whatever happens with the 49ers stadium. CF owns a lease to the land and the parking lots, and does not actually own the land that the park sits on. Thanks for the name of that other park. Didnt want to say the wrong one lol. Quote Link to comment Share on other sites More sharing options...
KIBeast Posted June 14, 2009 Share Posted June 14, 2009 Filing for bankruptcy does not necessarily spell doom for SF. Look at Big KMart. They filed for bankruptcy and wound up turning things around. It seems that there has been some attempt at turning the chain around. I guess we'll have to see what else in addition can be done, if anything. Quote Link to comment Share on other sites More sharing options...
Beast1979 Posted June 14, 2009 Share Posted June 14, 2009 I'm glad that this is happening. Six Flags has been doing business poorly for quite a while now, and now here in bankruptcy they can sort it all out and come back strong, and do better business. Sell off some parks, reorganize the company, and they'll be good to go. Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 14, 2009 Share Posted June 14, 2009 Filing for bankruptcy does not necessarily spell doom for SF. Look at Big KMart. They filed for bankruptcy and wound up turning things around. It seems that there has been some attempt at turning the chain around. I guess we'll have to see what else in addition can be done, if anything. Big KMart also closed some stores. We are lucky in Columbus, Ohio to maybe have 2 stores that are still open if that. And we had like 5 to 6 or more stores that was open before they filed. Maybe if the Six Flags ceo and board members took a pay cut(unlikely), then they could save some money. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 14, 2009 Author Share Posted June 14, 2009 Dalefan, are you aware that KMart went on to buy a company you may heard of? I believe it was called Sears & Roebuck. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 14, 2009 Author Share Posted June 14, 2009 An editorial: http://www.walletpop.com/blog/2009/06/13/s...over-lets-hope/ Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 14, 2009 Share Posted June 14, 2009 Dalefan, are you aware that Kmart went on to buy a company you may heard of? I believe it was called Sears & Roebuck. I aready knew that. But alot of the Kmart stores that they closed was the ones that wasnt doing so good. The only 2 Kmarts that are open in Columbus are spread apart. Buying Sears & Roebuck was a good deal. I know that the Kmart that was close to me went under when the Walmart opened. I expect that Walmart to go under do to the same people who run it ran the Kmart store next to it. Its never clean hardly and its a mess. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 15, 2009 Author Share Posted June 15, 2009 The form 8-K filed with the Securities and Exchange Commission describing the bankruptcy filing: http://investors.sixflags.com/phoenix.zhtm...1hCUkw9MQ%3d%3d Separately, Mark Shapiro says the bankruptcy will not involve any asset sales (no parks to be sold): http://www.iii.co.uk/news/?type=afxnews&am...;action=article Quote Link to comment Share on other sites More sharing options...
RailRider Posted June 15, 2009 Share Posted June 15, 2009 Good day for Mr. Shapiro he just earned a $3 Million bonus. As some may remember he has a clause in his contract that if he helped SIX restructure or go through bankruptcy he gets a success bonus. Quote Link to comment Share on other sites More sharing options...
KIBeast Posted June 15, 2009 Share Posted June 15, 2009 I did not know that, Railrider. If we all could only receive bonuses for such things. What I meant, Dalefan, was that even though they are filing for banruptcy, it doesn't mean that the entire chain will cease to exist. Would you rather all SF parks close or just some? Quote Link to comment Share on other sites More sharing options...
RailRider Posted June 15, 2009 Share Posted June 15, 2009 Heres the link to the Bloomberg article about the success bonus and he is not the only executive management at Six that will get the same type of bonus. Also nice to have you back around KIBeast Quote Link to comment Share on other sites More sharing options...
Dalefan Posted June 15, 2009 Share Posted June 15, 2009 I did not know that, Railrider. If we all could only receive bonuses for such things. What I meant, Dalefan, was that even though they are filing for banruptcy, it doesn't mean that the entire chain will cease to exist. Would you rather all SF parks close or just some? Just get rid of the ones that arent doing so good. They had to do that once aready. That was why Geauga Lake and Wyandot Lake was sold off in a move to try to get rid of some debt. Wyandot Lake had not see a new ride or waterslide in years. The only thing new ride wise they got was the bumper cars. But that was due to a fire happening just before the haunted thing they did. A cig was tossed into a bale of hay and it went from there. It also i beleave hit a game as well and the locker key pick up and drop off area. The zoo bought it and made it better. Geauga Lake sold for 140 million or somewhere around it and Wyandot Lake sold for 2 million. The zoo got rid of all the old rides and i think got rid of all the old water slides but the Sea Dragon(coaster) and the bumper cars. The place seems smaller but its more up to date. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 16, 2009 Author Share Posted June 16, 2009 They just don't get Six Flags: http://www.thestreet.com/_yahoo/video/1051...s=1#26489773001 It starts out a little weird, but... Quote Link to comment Share on other sites More sharing options...
Gabe Posted June 16, 2009 Share Posted June 16, 2009 It's all Mr. Six's fault! while I loved the commercials a couple yrs ago, I'm sure the premise fell flat "Hey we're all bored, but look! A creepy old guy in a vintage bus just pulled up and is motioning for us to get on the bus! I think we can totally trust this complete stranger that he'll take us somewhere fun!!" Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted June 17, 2009 Author Share Posted June 17, 2009 Except, except, except: * Attendance is UP. * Per capita spending is UP. * Guest satisfaction is way UP. It was the crushing debt load and the inability to refinance it that did them in. Seems another park chain also has a crushing debt load and wasn't able to refinance recently, after announcing that they would. They have a couple of years to turn things around...Six Flags had until August, and didn't make it quite that long. Quote Link to comment Share on other sites More sharing options...
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