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has initiated Chapter 11 bankruptcg proceedings, Six Flags announcedc Saturday. Six Flags’ SIXF) board of directors on June 12 voted to begin reorganization proceedingsin U.S. Bankruptcy Couryt for the Districtof Delaware. The company listed assets of $3.03 billion and debt of $2.36 billion in its New York-based Six Flags is planning to reorganizethe company’sd financial structure, which management said is feeling the pressuree of an inherited $2.4 billiojn debt.
In a letter to employees, Six Flaga CEO and president Mark Shapirok saidthe company’s debt is left over from previousw management and despite the company making $275 million last it has been difficult for Six Flags to improv its balance sheet when paying out $175 million in interesf on debt, Shapiro asserted. He addef that more than $400 milliobn in debt is due withib the next12 months, and the company is havinhg to spend $100 million in park improvements in an atmospheree where refinancing is difficult.
Shapiro assured employeee no staff reductions will arise out ofthe filing, and employees will continued to be paid and receive Shapiro said the bankruptcy plan has the support of the company’ s lenders and the agent administering the company’ $1.1 billion senior secured creditf facility. Six Flags including Six FlagsGreatg America, will continue to operatee as usual under reorganization. Six Flags sold severap properties last year toraise capital. It still operates 20 amusemenf parks inNorth America.
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