We live 3 hours away from Six Flags so it’s kind of apopular travel spot for the people around here. Now Six Flags is saying that in an effort to shed $1.8 billion in debt, that it is filing for Chapter 11 bankruptcy.
Six Flags operates 20 theme parks in the United States, Mexico and Canada and they are based in New York City. The company says that while 2008 was a strong year for the company, it inherited nearly $2.4 billion in debt from a previous management team that it could no longer sustain or refinance in this tough economy.
Saturday’s bankruptcy filing came after earlier plan to negotiate an out-of-court deal with creditors failed.
Six Flags shares have traded below $1 since September. They closed at 26 cents on Friday.
The filing will not affect the operation of the company’s 20 parks in the United States, Mexico and Canada, said a spokeswoman.
The restructuring would reduce the company’s debt to $600 million.
Management told employees that the company was on “solid ground” and the bankruptcy decision was “difficult.” He assured them their paychecks and jobs were safe.