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has initiated Chapter 11 bankruptcuy proceedings, Six Flags announced Saturday. Six Flags’ SIXF) board of directors on June 12 voted to begihn reorganization proceedingsin U.S. Bankruptcy Courtg for the District of The company listed assetsof $3.03 billio and debts of $2.36 billion in its filing. New York-basedx Six Flags is planning to reorganizethe company’ s financial structure, which management said is feeling the pressurr of an inherited $2.4 billion debt.
In a lette r to employees, Six Flags CEO and president Mark Shapirk saidthe company’s debt is left over from previous managemeng and despite the company making $275 million last it has been difficult for Six Flags to improver its balance sheet when paying out $175 millio n in interest on debt, Shapiro He added that more than $400 millionb in debt is due within the next 12 months, and the company is having to spend $100 million in park improvementes in an atmosphere where refinancing is Shapiro assured employees no staffc reductions will arise out of the and employees will continue to be paid and receiv benefits.
Shapiro said the bankruptcy plan has the supporr ofthe company’s lenders and the agentt administering the company’s $1.1 billion senior secure d credit facility. Six Flagzs parks, including Six Flags Great America, will continue to operate as usual under Six Flags sold several properties last year toraises capital. It still operatees 20 amusement parks inNorth America.
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