29yrswithaGApass Posted March 11, 2009 Report Share Posted March 11, 2009 Source: Bloomberg.com Six Flags Reports Uncertainty on Ability to Continue By Meg Tirrell March 11 (Bloomberg) -- Six Flags Inc., the owner of a chain of 20 theme parks, said there is substantial doubt about its ability to continue as a “going concern” unless a successful restructuring occurs. The New York-based company has $287.5 million of Preferred Income Equity Redeemable Shares, or PIERS, plus accrued and unpaid dividends, due Aug. 15, it said today in a regulatory filing. “Given the current negative conditions in the economy generally and the credit markets in particular, there is substantial uncertainty that we will be able to effect a refinancing of our debt on or prior to maturity or the PIERS prior to their mandatory redemption date,” Six Flags said in the filing. The company may have to seek a pre-packaged or pre-arranged Chapter 11 filing if it can’t negotiate a restructuring agreement with the PIERS holders out of court, it said. That would likely happen “well in advance of” the PIERS maturity date, Six Flags added. KPMG LLP, the auditors, said there is “substantial doubt” about the company’s ability to continue as a “going concern,” Six Flags said in the filing. Six Flags fell 3 cents, or 14 percent, to 18 cents at 4:35 p.m. in trading after the New York Stock Exchange closed. The shares have lost 32 percent this year through 4 p.m. today. To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net. Last Updated: March 11, 2009 17:25 EDT Quote Link to comment Share on other sites More sharing options...
ChrisChavan Posted March 11, 2009 Report Share Posted March 11, 2009 Umm... Anyone else find it a bit awkward that their announcement referring to their earnings was wonderful news, and now all of the sudden they say they doubt they'll be able to continue? This is horrible! Quote Link to comment Share on other sites More sharing options...
29yrswithaGApass Posted March 11, 2009 Author Report Share Posted March 11, 2009 Standing alone, quarterly reports can seem good, but they still have a huge dark cloud of $2+ billion in debt directly overhead with some key due dates coming up real soon this summer. Quote Link to comment Share on other sites More sharing options...
JetsDevs4Lyf Posted March 11, 2009 Report Share Posted March 11, 2009 Quote Link to comment Share on other sites More sharing options...
Mike13 Posted March 12, 2009 Report Share Posted March 12, 2009 (edited) Well that definatly sucks,I could see them selling of a park or two like Cedar Fair is possibly going to do and try to get all they can for the property.Or maybe Six Flags can get Government bailout money Edited March 12, 2009 by Mike13 Quote Link to comment Share on other sites More sharing options...
The Master Posted March 12, 2009 Report Share Posted March 12, 2009 (edited) Chapter 11 is not the end for Six Flags but it is a last ditch thing for a failing company. But I will be surprised if SF doesn't go under. Well at least SFOT and SFOG won't go under with the chain since those two parks are leased by SF to run. Edited March 12, 2009 by The Master Quote Link to comment Share on other sites More sharing options...
nbadude44 Posted March 12, 2009 Report Share Posted March 12, 2009 To quote Homer Simpson: CRAPCRAPCRAPCRAPCRAPCRAPCRAPCRAPCRAPCRAPCRAPCRAPCRAP... Quote Link to comment Share on other sites More sharing options...
Railer Posted March 12, 2009 Report Share Posted March 12, 2009 I know our park usually has very stong crowds. Whoever end's up owning it, or running it I think Great Adventure will have a future. Here's a couple of thought's although very unlikely, Disney's Great Adventure or Cedar Fair's Great Adventure. It sound's like a weird alternate reality nightmare. Quote Link to comment Share on other sites More sharing options...
Great Adventurer Posted March 12, 2009 Report Share Posted March 12, 2009 NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Sixflags... Just can't go under. We'll find a way out... Or maybe Six Flags can get Government bailout money LOL! Quote Link to comment Share on other sites More sharing options...
warnerleroy Posted March 12, 2009 Report Share Posted March 12, 2009 I know our park usually has very stong crowds. Whoever end's up owning it, or running it I think Great Adventure will have a future. Here's a couple of thought's although very unlikely, Disney's Great Adventure or Cedar Fair's Great Adventure. It sound's like a weird alternate reality nightmare. VERY wierd. I did have a dream though that six fLags will sell all of it's parks except GADV and turn GADV into a Disney type resort. Quote Link to comment Share on other sites More sharing options...
Yoshi Posted March 12, 2009 Report Share Posted March 12, 2009 I am REALLY regretting buying those shares of SIX yesterday. I hope they can get through this Quote Link to comment Share on other sites More sharing options...
GAcoaster Posted March 12, 2009 Report Share Posted March 12, 2009 I wouldn't get too worried about this. They are looking to re-negotiate their loan terms, and lenders would rather re-negotiate than lose out on being paid. Quote Link to comment Share on other sites More sharing options...
rcji Posted March 12, 2009 Report Share Posted March 12, 2009 I wish I can be positive but I feel this is Six Flag's last year. I'm sure and I hope the parks will remain in good hands such as GADV, MM and so on. Quote Link to comment Share on other sites More sharing options...
GAcoaster Posted March 12, 2009 Report Share Posted March 12, 2009 MANY companies have gone into bankruptcy and emerged stronger and better. Don't count Six Flags out...people have been saying "this is the last year for Six Flags" for the past 10 years... As Mark Twain said when he read his own obituary: "Reports of my demise are greatly exaggerated". Quote Link to comment Share on other sites More sharing options...
jaguars06 Posted March 12, 2009 Report Share Posted March 12, 2009 Not good news, however i highly doubt GADV is leaving anytime soon, through Six or through another company like Cedear Fair, or PARC Management Quote Link to comment Share on other sites More sharing options...
Mike13 Posted March 12, 2009 Report Share Posted March 12, 2009 I don't want to get off topic or anything and I was going to make a new topic for this but if Six Flags does go under who do you see buying Great Adventure if anyone would buy it?I could see Merlin Entertainment,although I have never been to one of there parks Alton Towers and Thorpe Park look like well rounded parks with coasters/flats,and look to be well ran. I don't want to get off topic or anything and I was going to make a new topic for this but if Six Flags does go under who do you see buying Great Adventure if anyone would buy it?I could see Merlin Entertainment,although I have never been to one of there parks Alton Towers and Thorpe Park look like well rounded parks with coasters/flats,and look to be well ran. Quote Link to comment Share on other sites More sharing options...
jaguars06 Posted March 12, 2009 Report Share Posted March 12, 2009 Its a good question mike, i really dont know anything about Merlin ent. Ideally i would like to see Prac mangment or Cedear Fair buy it, however i think the company that buys GA may be a small and up and coming compnay looking to add to its collection. Quote Link to comment Share on other sites More sharing options...
GAcoaster Posted March 13, 2009 Report Share Posted March 13, 2009 I don't see it as a possibility that Cedar Fair or Parc management could buy Great Adventure or most of the Six Flags properties since neither has the cash or the credit to do it. The only possible contenders would be some of the overseas companies. Honestly I don't see anything changing...bankruptcy could be the best thing to happen to Six Flags if it means they are finally out from under $2 billion in debts. Quote Link to comment Share on other sites More sharing options...
southview2 Posted March 13, 2009 Report Share Posted March 13, 2009 (edited) Heres what I think should happen to each park. Six Flags: New Orleans-DEMOLISH. Save whatever rides you can and relocate. Sell land. Great Adventure- Keep. Magic Mountain- Keep. Kentucky Kingdom- Sell. St. louis- sell. Mexico- SELL. America- Keep. Over texas- Keep. Fiesta Texas- Sell land relocate rides. Over Georgia- Sell. New England- Keep. Discovery Kingdom- keep. Great America- Sell land and relocate rides. And Im not sure how they do with La Ronde and great escape, I know they operate them but do they own them? If they do I say sell them both, either the land or park. I like the selling land and relocating rides idea the best, its a easier way to have "NEW" things for the parks. Less exspensive. Keeping a grand total of 6 parks. They might not be the biggest but they wont have a big debt assumeing everything goes well. Just my . Edited March 13, 2009 by southview2 Quote Link to comment Share on other sites More sharing options...
GAcoaster Posted March 13, 2009 Report Share Posted March 13, 2009 Interesting thoughts, except SFGAm and SFFT are some of the biggest money makers, and SFOG isn't wholly owned by SF. More likely some of the non-core assets would be first to go. SFKK, SFA, SFM, LaRonde and Great Escape/GELodge would be the ones I would expect to see go first if it came down to it, but honestly I don't see any of it happening soon. I believe this announcement was more to try and leverage their creditors than anything. A creditor will always try to renegotiate a loan than have the debtor go into bankruptcy. Quote Link to comment Share on other sites More sharing options...
southview2 Posted March 13, 2009 Report Share Posted March 13, 2009 I see what your saying, But one thing Im really stern about is SFNO,SELL THE LAND SF! relocate those rides. Quote Link to comment Share on other sites More sharing options...
GAcoaster Posted March 13, 2009 Report Share Posted March 13, 2009 They would if anyone wanted to buy it. The real estate market is really soft right now, and no one wants that land for a park or for just about anything in New Orleans. Quote Link to comment Share on other sites More sharing options...
29yrswithaGApass Posted March 13, 2009 Author Report Share Posted March 13, 2009 Source: Asbury Park Press Theme park expects tough times to help By Michael L. Diamond • BUSINESS WRITER • March 13, 2009 Six Flags Great Adventure in Jackson will operate business as usual this summer, a park official said today, even as its parent company weighs bankruptcy in a scramble to pay back investors. Angel Aristone, a spokeswoman for the Jackson theme park, said Great Adventure is profitable. It isn't raising the daily admission fee of $39.99 online or $49.99 at the gate. And it is turning its attention to new attractions. "These back-of-house issues will have zero bearing on our park or day-to-day operations," Aristone said. "Great Adventure is profitable and preparing for our best season ever with more of our guests staying closer to home." New York-based Six Flags said this week that it may need to file for Chapter 11 bankruptcy if it can't reach a deal to restructure almost $300 million in preferred stock, which is due in August. A bankruptcy filing would allow the company to continue to operate while it works to improve its financial footing. But the discussion of bankruptcy, laid out this week in a filing with the U.S. Securities and Exchange Commission, shows the company is feeling the stress of the declining economy and the slow credit markets. "The options are not particularly pretty," said Andy Liu, an analyst with Standard & Poor's in Chicago. Six Flags has struggled to become profitable since Washington Redskins owner Daniel Snyder bought the company in 2005 and turned it over to former ESPN executive Mark Shapiro to manage. The new team has tried to return to basics of family entertainment, particularly at Great Adventure, which S&P said had suffered from under-investment from its previous management team. There were signs last year of improvement. Six Flags' companywide revenue grew 5.2 percent from 2007, despite a cut in prices. And the company's loss narrowed to $113 million from $253 million in 2007. But it faces an Aug. 15 deadline to pay investors some $300 million. If not, it would would be considered in default with other lenders as well, Liu said. The company's options are limited, particularly because many banks still are reeling from bad loans they made earlier in the decade. For example, Six Flags could drum up new investors or sell assets to pay its debt, but few banks would finance those deals, Liu said. "It's kind of difficult to predict these days, with the credit market and banks under so much stress," he said. Meantime, Aristone said Great Adventure is focusing on the season at hand. The company has spruced up its Medusa roller coaster ride by adding special effects such as fog, fire and onboard audio. And it hired Pyrotechnico, an award-winning fireworks company, to produce Saturday-night fireworks shows that Aristone likened to "fireworks on steroids." The park's opening day is April 4. Quote Link to comment Share on other sites More sharing options...
The Master Posted March 13, 2009 Report Share Posted March 13, 2009 (edited) Interesting thoughts, except SFGAm and SFFT are some of the biggest money makers, and SFOG isn't wholly owned by SF. More likely some of the non-core assets would be first to go. SFKK, SFA, SFM, LaRonde and Great Escape/GELodge would be the ones I would expect to see go first if it came down to it, but honestly I don't see any of it happening soon. I believe this announcement was more to try and leverage their creditors than anything. A creditor will always try to renegotiate a loan than have the debtor go into bankruptcy. Yeah I think both SFOT and SFOG are owned by the heirs of Angus Wynne, the guy who started SFOT. Six Flags just leases those two parks. A couple of years ago there were rumors of SFA being sold off. Edited March 14, 2009 by The Master Quote Link to comment Share on other sites More sharing options...
Mike13 Posted March 13, 2009 Report Share Posted March 13, 2009 And if you don't believe that article,someone my mom works with,the guy she works with ran into somebody high up (don't want to say any names)and they talked about things and how (he/her went to school with his wife and stuff)then he asked if they are concerned for there job and they said "Trust me,we'll be fine"So that's coming from someone high up at Great Adventure,so one way or another I can guarentee we will see GA live on if Six went under.But SFGA,SFGAm,SFOT,SFFT,and SFOG would be safe for time being.If it got really bad I don't know who would go. Quote Link to comment Share on other sites More sharing options...
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