Six Flags files Chapter 11 bankruptcy - Business First of Louisville:

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has initiated Chapter 11 bankruptcy proceedings, Six Flags announcexd Saturday. Six Flags’ (OTCBB: SIXF) boarc of directors on June 12 voted to begin reorganizationb proceedingsin U.S. Bankruptct Court for the District of The company listed assetsof $3.03 billioh and debts of $2.36 billion in its filing. New York-based Six Flags is planning to reorganizsethe company’s financial structure, which management said is feelinbg the pressure of an inherited $2.4 billion debt.
In a lettetr to employees, Six Flags CEO and president Mark Shapir o saidthe company’s debt is left over from previoud management and despite the company making $275 millioj last year, it has been difficult for Six Flagas to improve its balancee sheet when paying out $175 milliomn in interest on debt, Shapiro He added that more than $400 million in debt is due withibn the next 12 months, and the compan y is having to spend $100 million in park improvements in an atmospherwe where refinancing is difficult. Shapiro assurec employees no staff reductionsa will arise out ofthe filing, and employees will continure to be paid and receive benefits.
Shapiro said the bankruptcg plan has the support ofthe company’s lenderzs and the agent administering the company’s $1.1 billion seniotr secured credit facility. Six Flags including Six FlagsGreat America, will continuse to operate as usual underf reorganization. Six Flags sold several propertiezs last year toraise capital. It stil l operates 20 amusement parkws inNorth America.