In an effort to shed $1.8 billion in debt, popular theme-park chain Six Flags announced Saturday that it was filing for Chapter 11 bankruptcy.
The filing will not affect the operation of the company’s 20 parks in the United States, Mexico and Canada, said spokeswoman Sandra Daniels. “This restructuring will have no impact on families who come out to our parks. They will not see an inch of difference,” Daniels said. In an online letter to employees, President and CEO Mark Shapiro said Six Flags inherited a $2.4 billion debt load that “cannot be refinanced in these financial markets.” “This process is strictly a financial restructuring of our debt and that’s how you should view it and speak about it,” Shapiro said in the message posted on the Six Flags Web site. He said Six Flags was seeking expedited approval from the for the District of Delaware of a pre-negotiated plan of reorganization under Chapter 11 of the United States Bankruptcy Code. He said the company actually performed well in 2008, attracting 25 million visitors and making $275 million. But it could not keep up with its debt obligations. See interactive map of Six Flags locations » “That’s a balancing act you just can’t risk year in and year out,” he said. “Today, we are moving to rectify our balance sheet once and for all. Believe me when I say we will emerge from this process stronger and more competitive than ever.” Read Shapiro’s online letter to employees
The restructuring would reduce the company’s debt to $600 million. Shapiro told employees that the company was on “solid ground” and the bankruptcy decision was “difficult.” He assured them their paychecks and jobs were safe.