More and more companies are declaring Chapter 11 bankruptcy as a result of the global recession and economic slowdown. We have seen huge companies such as Lehman Brothers, Washington Mutual, Nortel Networks, General Motors and other companies succumbing to the effects of the global recession. The latest among the list includes Six Flags declaring bankruptcy.
Six Flags is the world’s largest regional theme park company with about 20 theme parks operating across US, Canada and Mexico.
Yesterday, June 13, 2009, Six Flags, together with its 36 affiliated companies filed bankruptcy in the US Bankruptcy Court in Wilmington Delaware under the lead case Premier International Holdings, Inc. with case number 09-12019 and which listed assets of $3 billion and debts of $2.4 billion as of December 31, 2008.
As of March 31, 2009, Six Flags was reportedly to have $79.4 million in cash as against its huge debt amounting to $2.31 billion with HSBC Bank USA, National Association as trustee for the bondholders being the largest unsecured creditor holding about $400 million of unsecured debts.
The restructuring plan includes a deleveraging of the company’s balance sheet by about $1.8 billion in debts, as well as the elimination of more than $300 million in preferred stock obligations.
Mark Shapiro, the New York-based company’s Chief Executive Officer (CEO) says that the move won’t affect the day-to-day park operations.
It was earlier reported that Six Flags had been burdened with a massive debt load and a looming cash payment with its debt obligations since August of last year. As a matter of fact, it was one of my watch list considered as a distressed company looming for a Chapter 11 bankruptcy protection.
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