Six Flags May Not Survive 2009...

[Sir Clinksalot]

^ I just bought a couple hundred shares of AIG.

 

The company can't fail, and their stock will definately go up from where I bought it. I'd buy some more of that before SIX.

[Mechanic]

Buying the stock right now would be more like betting on 0 or 00 at that roulette wheel. I'm hoping the company will pull through, but I can't really see any way it can happen witthout the current shareholders taking a BIG hit.

[Bolliger&Mabillard]

It doesn't seem like they have a plan to get out of this hole...The only way they're going to solve this issue is with a solid plan that it doesn't seem they have. For now, it seems that they are making huge improvements, but are just bringing their parks to bare minimums. As for the rumored loan they got approved for...they should be weary. That's not goibg to solve their debt, just changes who they owe.

[Jew]

^That's how a majority of corporations do business! If they were to get a loan, it would solve the problem currently crippling the company: owing $300 million by August.

[CoasterNews.Net]

It doesn't seem like they have a plan to get out of this hole...The only way they're going to solve this issue is with a solid plan that it doesn't seem they have. For now, it seems that they are making huge improvements, but are just bringing their parks to bare minimums. As for the rumored loan they got approved for...they should be weary. That's not going to solve their debt, just changes who they owe.

 

They do have a plan. They want to convert their debt to equity in the company giving 85% to bond holders, 10% to PIERS holders, and 5% ownership to common-stock holders. The issue is one of the bond holders is holding out, everybody else is in agreement w/ this plan.

 

They aren't bringing parks to bare minimums, they have $200 million in cash to cover operating expenses this year.

 

If they did get a new loan, that is great news because that new loan won't be due in August.

[ParkTrips]

Yeah what is this loan you are talking about? I searched financial sites and found nothing of such rumor

[packfanlv]

I found a new article today stating that Six Flags may not make a $7 million payment due on April 15. It also goes on to mention a lot of the same stuff we have been discussing in this thread. Here is a link.

 

http://uk.reuters.com/article/ousiv/idUKTRE5377ZE20090408?pageNumber=2&virtualBrandChannel=0

 

Excerpt:

On April 15, Six Flags, one of the nation's top theme park operators, is due to make payments of about $7 million to bondholders. Six Flags intends to pay its obligations "as they come due," said company spokeswoman Sandra Daniels.

 

But industry experts are questioning New York-based Six Flags' ability to make the payment -- especially after earlier this year the company warned it could buckle under its debt.

 

Even if the company managed this payment, it still would need to come up with another $288 million for owners of its Preferred Income Equity Redeemable Shares (PIERS) and $31 million in accrued and unpaid dividends by mid-August.

[CoasterNews.Net]

I'm sure they can find $7 million in the $200 million in cash they have on hand.

[packfanlv]

^But its a matter of whether or not they will pay it given the nature of their situation.

[Manic Monte]

^ Why would they make this payment if they plan on filing Chapter 11 at some point. Chapter 11 wipes away the 7 Million along with all the rest. I wouldn't pay it either.

[CoasterNews.Net]

They are attempting to not file bankruptcy though. If they don't pay this they will have to file because a default of any payment triggers defaults on the other outstanding payments. Obviously they are pretty confident they can hold it out and see how their numbers do this summer so they should pay it to avoid bankruptcy now.

[Hotlanta]

Six Flags will be de-listed from the New York Stock Exchange from April 20th.

 

 

Troubled theme park operator Six Flags Inc. said Thursday that its common stock and Preferred Income Equity Redeemable Shares, or PIERS, are being suspended from trading on the New York Stock Exchange.

 

The New York-based company said trading of its shares will be suspended before the market opens on April 20. Six Flags said it does not plan to appeal the decision.

 

The company's shares have traded below $1 since September. On Thursday, they were trading at 26.6 cents apiece.

 

Last month, Six Flags said it may be forced to file for Chapter 11 bankruptcy protection if it could not complete an out-of-court restructuring of its debt and PIERS. The company has said it does not expect to have enough cash -- more than $300 million -- to redeem the PIERS by its Aug. 15 deadline.

 

If Six Flags fails to meet that obligation, it would constitute a default under its credit facility that would allow the company's lenders to accelerate the payment schedules on their obligations.

 

On Thursday, Six Flags said its restructuring plans include the issuance of a "significant number of shares of common stock" to holders of the company's restructured securities.

 

The company also said it has retained financial and legal advisers to assist the company with its restructuring efforts.

 

Upon delisting, Six Flags expects its stock and the PIERS to trade on the over-the-counter market and be quoted on the OTC Bulletin Board.

 

"The delisting of our common stock is a byproduct of the inherited debt load on our balance sheet and the overall financial markets. In no way does it reflect the operational strength or turnaround of this company," said Six Flags President and Chief Executive Mark Shapiro in a statement. "This development will have zero impact on our park operations, the guest experience this summer or our vendor relationships."

 

Six Flags said it expects to qualify for listing on a national securities exchange if the restructuring is successfully completed.

[CoasterNews.Net]

We knew this was coming for awhile. Good to hear they plan to offer stock when the company does restructure.

[themeparkman25]

Just a small blurb was posted on msn money this morning about 10 companies that might not survive the year. Just some more numbers and over due debts.

 

Six Flags (SIX, news, msgs), the owner of more than 20 U.S. theme parks, is scarier for investors than the Dare Devil Dive, a ride at the company's Great Adventure & Wild Safari park in New Jersey. The company has a ton of debt and seemingly not enough money coming in to pay it off by the due dates.

 

At the end of last year, the company had about $2.1 billion in debt, according to Standard & Poor's, which cut Six Flags' credit rating last month. The company lost about $37.8 million in 2008 and $70.6 million in 2007, according to filings with the Securities and Exchange Commission.

 

The company also has bills coming due. Six Flags must pay holders of certain preferred income shares, known as PIERS, $287.5 million, plus $31.3 million in accrued and unpaid dividends, by Aug. 15. If Six Flags can't pay and can't refinance its debt obligations, it will be considered in default, which will trigger provisions in other loans requiring that some creditors are paid early.

 

Taken from here.