Six Flags rides into bankruptcy protection National Post Mon Jun 15 2009 SIX FLAGS INC., the owner of 20 theme parks across Canada, the United States and Mexico, sought bankruptcy protection over the weekend three years after Washington Redskins owner Daniel Snyder become chairman and hired new managers in an attempt to return it to profitability. The Chapter 11 petition filed in U. S. Bankruptcy Court in Wilmington, Del., listed assets of US$3-billion and debt of US$2.4-billion as of Dec. 31. Thirty-six affiliates also sought protection. The world's biggest theme-park operator hasn't posted an annual profit since 1998 and had losses of US$558.8-million in the two years after Mr. Snyder became chairman. Six Flags shares have fallen 86% in the past 12 months as investors have grown skeptical about the company's ability to refinance preferred income equity redeemable shares, or PIERS, before their August redemption date. The 48-year-old New Yorkbased firm said on Saturday it is seeking court approval of a prearranged reorganization that will cut debt by about US$1.8-billion and eliminate more than US$300-million worth of preferred stock obligations. Six Flags owns one Canadian amusement park, La Ronde, in Montreal, which is the country's second-largest amusement park after Canada's Wonderland in Ontario. The park, which initially opened as part of the Expo '67 world's fair, was built to be "a Canadian answer to the Tivoli Gardens in Copenhagen and Disneyland in California," according to Expo. The current proceedings will have no impact on the running of La Ronde, the park's president, Marc Tremblay, said yesterday. La Ronde, bought by six flags in 2001, is "very profitable," he said. "La Ronde has been investing a lot of money this year to make the park better than ever," Mr. Tremblay said. "Yesterday, we had record attendance for the 25th anniversary of our annual fireworks celebration. The restructuring is a back-of-the-house issue, which is good for the company and for the guests, but there is no affect at the park level." The most notable recent occurrence at La Ronde happened a month ago when 28 people were rescued after being trapped on a steep ascent on the park's rides. The reorganization plan has yet to be filed with the court. Mark Shapiro, chief executive of Six Flags, said the action will not affect day-to-day park operations. The bankruptcy filing "paves the way for a full revival of the company," he said. The 20 largest creditors without collateral backing their claims are owed about US$1.3-billion, according to court papers. HSBC Bank USA, National Association, as trustee for holders of the company's 12.25% notes due in 2016, is listed as the largest unsecured creditor. The principal amount due under the bonds is US$400-million. Any debt-for-equity exchange offers by the company have ended due to the bankruptcy filing, Six Flags said. Spokeswoman Sandra Daniels didn't respond to requests for comment.
