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Six Flags Corporate Discussion Thread


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http://abcnews.go.com/Business/wireStory?id=10538953

 

Theme park operator Six Flags Inc emerged from Chapter 11 bankruptcy on Monday after wiping out more than a billion dollars in debt by turning the company's ownership over to bondholders.

 

The company, which operates 19 amusement parks in North America, enters its high season without the constraints of bankruptcy and with less than half the debt it had a year ago.

 

The company now has more financial flexibility to pursue a shift in strategy toward attracting more families to its amusement parks, an approach spearheaded by Mark Shapiro when he took over the top executive job in 2006.

 

The company exits bankruptcy under the control of hedge funds such as Stark Investments, Pentwater Capital Management and Bay Harbour Management. The funds owned its bonds and invested $725 million to recapitalize the company.

 

That money, along with about $1.27 in new debt, was used to pay off creditors and finance the company as its main summer season nears. Six Flags entered bankruptcy with $2.7 billion in debt and obligations from redeemable securities.

 

The company's pre-bankruptcy shares were wiped out under the reorganization.

 

Six Flags said it will apply to list its new shares on the New York Stock Exchange.

 

The bankruptcy case is In re: Premier International Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-12019.

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Corporate Six Flags goes up as ...

 

Six Flags over Georgia goes under! (water, again)

 

I am happy that Six Flags now has less restrictive capital to use, maybe now we can see some of these re-themeing ideas hit all of the parks!

 

Oh and ...

 

NO MORE DAN SNYDER!!!!!!!!!!

 

That alone is worth a toast to Shapiro and the bondholders!

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Awesome. This is great news! Shapiro is awesome, Terminator is a great addition, the Bizarro's look nice enough, and I am sure the GP are eating the effects up. General park improvements everywhere, friendly employees and very clean parks. Awesome! Simply Awesome!

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Glad to see them pull through, more competition in the industry is better for the GP.

 

Though, did anyone else have to do a bit of a double-take for what hedgefunds were in charge? "Stark Investments" totally came out (to me) as Enterprises and I was like....

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They now will have about half the debt of what they had before. Companies almost always have a lot of debt, so they are relatively back to normal. However, all shares will be dissolved, meaning you will get nothing. However, they did say they would offer some new stocks soon, so you could throw some more money at them.

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I believe "bondholders" is referring to the group of investors that initially triggered the bankruptcy in the first place when SF was unable to make a guaranteed payment on those notes.

 

Sounds like they are agreeing to buy a majority stake in the new company for 725 mil

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Good news for the parks, but BAD news for us stock holders whose stock is worth next to nothing now!

 

Shane - sorry to hear you were one of those stuck holding the bag. I sold at 19 cents, so I only lost $14,000 or so.

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I pray to God that they begin improving their parks now that they're out of half their original debt, even if the changes are minor.

 

And finally someone agrees with me. This is the best time for them to start improving things. Better yet, they should now focus on becoming more unique, which means stop building the same coasters. Build more rides that are unique and make the park more signature. Improve on Fright Fest and over all entertainment that is offered inside the park. I hope this did not change all the additions that the parks have been promised for 2011. And again, I will say that certain parks need a new coaster, not another water slide.

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Thoughts...

 

Shane-Did you own the shares pre-bankruptcy? Am I reading it wrong or am I getting that all former shares are now gone?

 

 

Yes I owned them pre-bankruptcy. I checked my portfolio this afternoon and it said all my stocks were valued at $0.00. OUCH! I understand that they have been diluted but I am not sure if they are still worth anything, even if that anything is just a fraction of $.01.

 

Larry do you know that answer to that?

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I saw somewhere that Six Flags is planning a park in Nigeria. Seems to me that they should get things in order here in North America before attempting to expand overseas again. That's part of what got them into trouble last time.

 

Eric

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Thoughts...

 

Shane-Did you own the shares pre-bankruptcy? Am I reading it wrong or am I getting that all former shares are now gone?

 

 

Yes I owned them pre-bankruptcy. I checked my portfolio this afternoon and it said all my stocks were valued at $0.00. OUCH! I understand that they have been diluted but I am not sure if they are still worth anything, even if that anything is just a fraction of $.01.

 

Larry do you know that answer to that?

 

In some articles today I read that common shares are worth $0, nada, bupkus, zilch. I wouldn't be surprised to see a class action lawsuit in the future, just because there are law firms that specialize in these situations. But I wouldn't count on more than a couple of cents a share if anything. More than likely nothing though.

Edited by larrygator
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