Six Flags Inc., the bankrupt theme park owner, would be taken over by its lenders under a reorganization proposal filed today. Lenders would be given 92 percent of the new stock to be issued under the proposal and a $600 million new term loan in exchange for canceling about $1.13 billion in debt, Six Flags said in court papers filed in U.S. Bankruptcy Court in Wilmington, Delaware....

http://www.bloomberg.com/apps/news?pid=206...id=aPiLLmSHA91M

I take it that is good news?

I take it that is good news?

Not really. Pretty much means the banks and investors now own and will manage the parks. Usually they don't look for quality but simply look at cutbacks. Only positive could be if they try to spin off some of the parks and another company such as Cedar Fair would buy, though I believe CF has a pretty high debt load right now, so that is pretty doubtful.

Okay then. I figured a lot of the debt would be gone, so that was good, so I figured it wasn't too bad. Oh well, I don't really know what stuff means when it comes to things like this. Eventually I will, though.

It's really too early to know what it means. First of all, the plan is a proposed plan and has not been approved, though it may well be. Second, no one yet knows who the banks will want to manage the parks...it may or may not be current management. Third, there have already been significant cuts across the chain in an unsuccessful attempt to attack the huge mountain of debt the current management inherited, and there were many parks sold, including the European Division, Elitch Gardens, Darien Lake, Enchanted Waves, etc.