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Joined: 29 Mar 2009 Posts: 186 Location: Rochester, NY
Posted: Sat Jun 13, 2009 2:10 pm Post subject: chapter 11 bankrupt for six flags?
Yes, six flags filled for chapter 11 bankruptcy today because of overwhelming debt. This is not the end for the parks[hopefully] but it means they might sell off some more of there smaller parks[Kentucky kingdom] to pay off debt. I think this won't be the end for all the parks, but if nobody buys smaller parks they may put up for sale they might transport the rides to a different park. So what are you guys[or girls] opinions on this? _________________ Follow me on Twitter!Click to view my Twitter
Joined: 20 Apr 2009 Posts: 193 Location: North Carolina
Posted: Mon Jun 15, 2009 12:44 pm Post subject:
It was time You dam if do and dam if you don't
But it's also right thing to do. The way the credit market is out there big lending isn't happing the way it should. In business sense it has to be done in order for the company to move forward in the future. Just listen to the message these manager of Six Flags are saying.
It's all about cutting the stings and moving forward. It free theme to do more, but cutting coast is one way they can do it.
If you look at the owners of Six Flag stock they're some pretty big names. Bill Gates, Dainel Synder Redskins owner, Cititgroup, Barclay's PLC, and hedge fund Renaissance Technologies LLC. Note that Bill Gates investment company Cascade Investment LLC which hold a 11% share. Wall Street Journal had a break down of how much and who own stock and debt at Six Flags' here a link.
http://online.wsj.com/article/SB124489639859012503.html
Good news is it's a chapter 11 and not chapter 7. 7 is bad that were they close all the parks and sell everything to make up the debt. With Chapter 11 it free them to operate and pay back the debt, but with rules as to how they are able to spend in the future until the are free up. CEO of Six Flags talks about it would take them 4 to 6 months to come out of bankruptcy.
Link to Six Flags plan out of bankruptcy.
http://www.bloomberg.com/apps/news?pid=20601103&sid=atNAcbVRbTjE
Well I hope thing's go well. I don't see a end of Six Flags, just a mis-step until they get there business profolio back in line. I surprise there hasn't been talk of mergers here. Unlike the fall of GM were a merger seem to be there savior, I didn't here real good talk about Cedar Point merger or Merlin UK. At least it didn't go down the way Hard Rock Park was when they were going though bankruptcy. All things goods, Six Flags is here to stick around, just look for smaller things to came out until our great economy turns around in a big way
Joined: 01 May 2008 Posts: 398 Location: Nashville, TN
Posted: Mon Jun 15, 2009 1:03 pm Post subject:
I meant to choose the 3rd choice but I accidently chose "Yes". Anyway, I think they will sell off some of the smaller parks that aren't making much money (SFKK). Overall, I think the company will make it out of bankruptcy after they make some property changes. _________________
Joined: 13 Apr 2008 Posts: 558 Location: Antelope, CA
Posted: Mon Jun 15, 2009 6:45 pm Post subject:
This was inevitable because of the $2.2+ billion debt they acquired from previous management. It must be done to epitomize the future of the business. This is the first MAJOR step to Six Flags recovery and as Shapiro has said multiple times, "This Is a Back Of House Issue." That means all parks will operate and will not be condemned because of the company's reconstructive action. It’s not abstruse, just circumstantial.
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You dam if do and dam if you don't 
