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Six Flags Properties for Possible Sale


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Closing/selling SFMM or moving around the coasters is probably the least of the concerns right now...

Six Flags is potentially in some serious, immediate trouble...their stock has continued to drop since their conference call on Thursday. Their market cap has dropped by like $200M in the past five days. (Six Flags has only about one-third the value of Cedar Fair as of this afternoon, and the Paramount Parks acquisition hasn't even closed yet!) Not suprisingly, the rating on their debt is being downgraded...

http://www.marketwatch.com/News/Story/Stor...=yhoo&dist=yhoo

This most recent downgrade puts their debt rating well on the way to "junk" status. They mentioned on the call that they were at risk of violating bank convenants, which means unless the CFO works some magic (as he did with Euro Disney), the wolves (the banks) are at the door.

Depending on how things go over the next few weeks, and how involved these "certain bank convenants" are (they didn't elaborate), I really don't think that a bankruptcy filing from SF would be terribly unexpected.

Hopefully, that won't be the case, but I'm as concerned today about the future of SF as I have ever been...

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^Some people think that Dan Snyder mentioned the possible selling off of six more parks to cause the stock to plummet so he could buy up more shares. He did own 11% and now owns 12%. I have no idea if there is any truth in this, but, it's something to think about.

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  • 3 weeks later...

Goldberg would not say whether other park operators had inquired about the property, but Cedar Fair L.P., which owns Knott's Berry Farm, Paramount's Great America in Santa Clara, Soak City water parks in San Diego and Palm Springs and other large parks across the country, says it will not be calling.

“At this point in time, with the acquisition of the Paramount parks, our focus is on integrating these five properties into our current portfolio of assets and we're not interested in additional acquisitions at this time,†said Stacy Frole, Cedar Fair's spokeswoman. The company purchased five Paramount parks from CBS Corp. for about $1.24 billion on June 30. Cedar Fair acquired Knott's in 1997. Cedar Fair and Six Flags are the two largest public owners and operators of regional amusement parks, Frole said.

http://www.dailynews.com/santaclarita/ci_4057464

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Goldberg would not say whether other park operators had inquired about the property, but Cedar Fair L.P., which owns Knott's Berry Farm, Paramount's Great America in Santa Clara, Soak City water parks in San Diego and Palm Springs and other large parks across the country, says it will not be calling.

“At this point in time, with the acquisition of the Paramount parks, our focus is on integrating these five properties into our current portfolio of assets and we're not interested in additional acquisitions at this time,†said Stacy Frole, Cedar Fair's spokeswoman. The company purchased five Paramount parks from CBS Corp. for about $1.24 billion on June 30. Cedar Fair acquired Knott's in 1997. Cedar Fair and Six Flags are the two largest public owners and operators of regional amusement parks, Frole said.

http://www.dailynews.com/santaclarita/ci_4057464

Sounds like the city does not want to see the park closed.

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