The History Of Six Flags Bankruptcy
If you enjoy amusement parks, or are forced to endure them for your children
, chances are you know the name Six Flags. After all, Six Flags Entertainment Corp. is the worlds largest amusement parkland corporation in terms of properties owned (21), and the fourth largest in terms of annual visitors (23.9 million). regardless , in spite of its area and acceptance , the company has a checkered background , with its numerous successes balanced by its numerous setbacks. it may be , the most toilsome of these setbacks was its bankruptcy filing on 13 June 2009. At the identical time, Six Flags greatest achievement would confidently be its manifestation from bankruptcy 11 months later. To procure the full history of the Six Flags Bankruptcy, a rapid recap of its recent description would not be remiss.
Trivia: The name Six Flags comes from the entitys first property Six Flags Over Texas, which in turn alludes to the six administrations that have exercised control over Texas at discrete points in its history - Spain, France, Mexico, the Republic of Texas, the Confederate States of America and the United States of America.
Starting out modestly in 1954 as a little enjoyment parkland in Arlington, Texas, Six Flags expanded tremendously over the years, with ownership changing hands a few times - Pennsylvania Railroad, Time Warner, Tierco Group (name later changed to Premier Parks), and eventually , Red Zone. Six Flags problems can be traced back to the huge debt taken on by Premier Parks to acquire the company from Time Warner. The managements efforts to offload properties in order to remunerate off debt resulted in a combat for oversee of the company reins in 2005, with Red Zone, owned by billionaire Daniel Snyder (and Washington Redskins owner) and controlling 12% of Six Flags stock, gaining command .
though , the brand-new directorship led by then-CEO Mark Shapiro inherited $2.4 billion in debt and did not prosper in improving matters. The sell-off continued with several properties such as the Frontier City, White Water Bay in Oklahoma, Elitch Gardens, Darien Lake, WaterWorld in Concord, California, Wild Waves and Enchanted Village in Federal Way, Washington and Splashtown in Houston, Texas being lay on the block. Even with the resultant cash, Six Flags continued to yield money. Over three years, cash flow decreased by $120 million and the share price continued its sliding spiral until the NYSE warned the company that its stock value had fallen below-stairs the required minimums to be left listed. And then came the sub-prime mortgage crisis and the resultant credit squeeze.
Six Flags start it obstructive to originate regular payments in 2009, and shortly filed for Chapter 11 bankruptcy safeguard . The proposed restructuring method envisioned lenders receiving 92% of the company in exchange for canceling $1.13 billion in debt, and reducing redeemable preferred stock to about $1 billion from about $2.7 billion. As per the end settlement , junior note holders, including hedge funds Stark Investments and Pentwater Capital Management, assumed conduct of the company, while chief note holders were paid in cash. Chairman Daniel Snyder was removed and CEO Mark Shapiro remained in office temporarily, leaving a week after Six Flags emerged from bankruptcy on 3 May 2010.
Although the company is quiet a extended manner from perfect health, it is limping toward that ambition . Cost-cutting continues with recent layoffs, including the departure of three vice-presidents, looking to cut $16 million from annual operating costs. With things looking up, you can be reassured that your favorite theme garden (or single that you are forced to like for your children), will not shut down operations anytime soon.
by: Jim Knight
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