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Six Flags Corporate Discussion Thread


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OoOoOoOoh. This could be cool. I've sorta missed all the Looney Toons crap at Darien Lake, the park is pretty bland. As long as the park can get some proper care with the occasional upgrade, I'm happy. And, if they hurry up and do this, then I'll already be covered with my 2010 Six Flags pass.

 

Thanks for the info!

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I visited Elitch's back in 2008 when it was under PARC ownership and in 2006 under Six Flags ownership. Let me say, I prefer Six Flags's ownership.

 

Notably, their "new for 2008" ride Ghost Blasters was still under construction in August (it opened in October, which is fitting). But the fact they had an ad campaign out for the ride being open and the ride missing most of the 2008 season raised some signs that cash isn't flowing in PARC.

 

The employees under PARC's management, I know a few employees of EG post here. But for the most part, most of the employees seemed unenthusiastic under PARC's ownership. Either Six Flags (back in 2006 when they started to turn around) had some good morale boost or PARC was cutting back even more.

 

While getting back "excess parks" is a curveball in Six Flags's plan of getting out of debt. I feel that Darien Lake, Elitch Gardens, and Magic Springs would benefit greatly from being under Six Flags control.

 

But only time will tell what will happen right now.

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Is Magic Springs a park that was formally owned by Six Flags?

 

I've heard it was an absolutely terrible year for this park with so much potential. Did the two major coasters end up operating at all in 2009?

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^Yes it was. The sale to Parc consisted of Elitch Gardens (which, ^^, I work at), Darien Lake, Magic Springs, Frontier City, Wild Waves and...there is another, but I can't remember it. Maybe they count Wild Waves as one, and Enchanted Village as another.

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So, I am confused. PARC is simply a management company, they do not own the parks, at least to my knowledge. The owner is CNL Lifestyle. So who is making the payments to SF to pay off the parks, Parc of CNL?

 

With that in mind, (^) I don't think Parc has the full decision in making investments as they are simply a management group. The money is coming from CNL I believe.

CNL owns the land as a landlord and each park is it's own PARC LLC company. PARC is the one that owes here according to the note.

 

The ScreamScape figures are a little off as what is owed is part of the Deferred Amount and not the annual payment. It is actually over $2 million plus interest SF is looking for.

 

Also, the only way SF gets the parks back is if the judge rules it in third cause of action in the claim or PARC defaults. The other claims (1,2,4) all just want money and interest.

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Magic Springs was never a Six Flags or Premier park. It was previously owned by Themeparks LLC and was sold to CNL and then leased back to Themeparks LLC (early 2008). In June of 2008 it was announced that Parc would be taking over the lease and the operation of the park.

 

Seven parks were sold to Parc Management from Six Flags in 2007. They were:

 

Frontier City- Oklahoma City

White Water Bay - Oklahoma City

Darien Lake - Buffalo

Elitch Gardens - Denver

Wild Waves - Seattle

Water World -San Fran

Splashtown -Houston

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Misleading rumors have surfaced that PARC Management, LLC (“PARC”) would like to dispel. Six Flags has not brought legal action against PARC for the return of the parks purchased by PARC from Six Flags in April 2007. PARC and Six Flags have had an ongoing dispute regarding the language of one of the agreements made between them as part of the 2007 purchase. This dispute involves the interpretation of a promissory note in which Six Flags alleges the language provides for non-scheduled principal pre-payments. Early last year PARC filed suit against Six Flags asking the court to declare the language does not provide for non-scheduled principal pre-payments. This action was “stayed” when Six Flags filed Bankruptcy (meaning that PARC could not proceed in its legal action without Bankruptcy Court approval). Very recently, Six Flags filed in its Bankruptcy proceeding a claim based on this year-old dispute. You should know that Six Flags has not sought, has no right to recover and has no security interest in any of its former properties. Six Flags has not requested any relief other than financial recovery for the alleged non-scheduled principal prepayments. In fact, PARC has upheld its obligations under its agreements with Six Flags and will continue to do so. Most importantly, PARC is looking ahead to the 2010 season with many new events planned for its 25 theme parks and family entertainment centers across the United States and Canada.

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Misleading rumors have surfaced that PARC Management, LLC (“PARC”) would like to dispel. Six Flags has not brought legal action against PARC for the return of the parks purchased by PARC from Six Flags in April 2007. PARC and Six Flags have had an ongoing dispute regarding the language of one of the agreements made between them as part of the 2007 purchase. This dispute involves the interpretation of a promissory note in which Six Flags alleges the language provides for non-scheduled principal pre-payments. Early last year PARC filed suit against Six Flags asking the court to declare the language does not provide for non-scheduled principal pre-payments. This action was “stayed” when Six Flags filed Bankruptcy (meaning that PARC could not proceed in its legal action without Bankruptcy Court approval). Very recently, Six Flags filed in its Bankruptcy proceeding a claim based on this year-old dispute. You should know that Six Flags has not sought, has no right to recover and has no security interest in any of its former properties. Six Flags has not requested any relief other than financial recovery for the alleged non-scheduled principal prepayments. In fact, PARC has upheld its obligations under its agreements with Six Flags and will continue to do so. Most importantly, PARC is looking ahead to the 2010 season with many new events planned for its 25 theme parks and family entertainment centers across the United States and Canada.

 

Hope PARC management can move the parks forward with quality development. Things are tight for most in the industry, but things must be very tight for PARC since they appear to not be adding any new rides at any of their parks this year. I could be wrong but I don't think they added any new rides last year either (except at Wild Waves).

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  • 1 month later...

http://www.dailyherald.com/story/?id=359517

 

Resilient Capital Management LLC, a holder of mandatorily redeemable preferred stock in Six Flags Inc., will urge the Delaware bankruptcy judge at a Feb. 19 hearing to appoint a Chapter 11 trustee for the theme-park operator.

 

With a contested plan confirmation hearing scheduled to begin March 8 and continue through March 19, Resilient contends Six Flags executives are putting their own interests ahead of creditors. As evidence of the abdication of responsibilities to creditors, Resilient argues that managers are "poised to collect a bankruptcy jackpot and success fee in excess of $100 million for landing the debtors in bankruptcy and then bringing them out."

 

Resilient contends in papers filed Feb. 11 that Six Flags executives failed to pursue avenues that would have averted bankruptcy "because doing so would have deprived the management team of its bankruptcy jackpot."

 

Resilient's request is being made in opposition to Six Flags' motion for an extension until April 2 of the exclusive right to propose a Chapter 11 plan. Resilient wants a trustee who would presumably craft a plan that wouldn't wipe out common or preferred shareholders. If the judge isn't inclined to have a trustee, Resilient says it would settle for an examiner to perform an investigation into how the company arrived at the plan now on the table.

 

Resilient had been attempting last year to gain permission from the judge to file a competing reorganization plan. For a discussion of Six Flags' plan and the proposed alternative, click here to see the Bloomberg daily bankruptcy report from Dec. 1.

 

The Six Flags Chapter 11 petition in June listed assets of $2.9 billion against debt totaling $3.4 billion, including an $850 million secured term loan and a $243 million revolving credit. New York-based Six Flags filed under Chapter 11 with 20 theme parks, including 18 in the U.S. (One of which is in Gurnee.) The parks have 800 rides, including 120 roller coasters.

 

The case is Premier International Holdings Inc., 09-12019, U.S. Bankruptcy Court, District of Delaware (Wilmington).

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http://www.reuters.com/article/idUSN1922747620100219

 

Six Flags, which has locked horns with creditors for months over its plans to exit bankruptcy, will be the only group allowed to present a restructuring plan to the court until April 5, after which other groups can present their own plans, according to a lawyer for the company.

 

Six Flags has said the extension means that it will be able to solicit votes ahead of its March 8 confirmation hearing, at which time the court will decide whether to give the plan the go-ahead, without the distraction of a competing plan.

 

Judge Christopher Sontchi in U.S. Bankruptcy Court for the District of Delaware overruled objections from some creditors to an extension to the company's deadline, according to Paul Harner, a lawyer at Paul, Hastings, Janofsky & Walker, who represents Six Flags. That right was to have expired last week.

 

Six Flags sought court protection in June with a restructuring plan that was friendly to its lenders. Then in November it adopted a plan proposed by certain senior bondholders, who plan to take control of the company.

 

Those bondholders, led by hedge fund Avenue Capital Group, are now battling with a group of junior bondholders, led by hedge fund Stark Investments, that wants its own plan for the company's reorganization to be adopted.

 

Harner said the judge also put off until Feb. 23 a decision on a motion to order the creditor committee and the company into mediation. ahead of the confirmation hearing. with the goal of forcing the various groups to a settlement.

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http://www.reuters.com/article/idUSN2520674820100226

 

The holders of approximately $650 million of notes said on Thursday they are close to finalizing debt and equity financing for a deal that would give them ownership of the business.

 

The plan would pay in cash claims against Six Flags Amusement Park, said the bondholders, known as SFI noteholders.

 

These bondholders have opposed the plan proposed by senior bondholders, or SFO noteholders, and adopted by the company.

 

The SFI noteholders said the senior bondholders "refused to negotiate and are trying to acquire the company at a substantial discount in order to wrongfully cutoff the interests of the SFI notes."

 

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http://www.dailyherald.com/story/?id=362620

 

Incumbent management of Six Flags Inc. evidently will lose their jobs if holding company noteholders succeed in taking over the theme-park operator by winning confirmation of their competing reorganization plan. Six Flags owns Great America in Gurnee.

 

In a statement last week, holding company noteholders owning $650 million in bonds said they are in the "final stages of finalizing" debt and equity financing for their plan. The noteholders explained how the bankruptcy judge said that having financing commitments behind a plan at a higher valuation would be a "key factor" in his decision about which plan to approve. The noteholders' statement said they have identified a "highly experienced, industry leading management team" to take over once their plan is approved and implemented. The holding company noteholders contend bondholders of the operating companies are trying to take over "at a substantial discount."

 

The holding company noteholders also said they voted against the company's plan. The contested confirmation hearing is scheduled to begin March 8. For a comparison of the company's plan and the alternative proposed by holding company noteholders, click here to see the Bloomberg daily bankruptcy report from Dec. 1.

 

The Six Flags Chapter 11 petition in June listed assets of $2.9 billion against debt totaling $3.4 billion, including a $850 million secured term loan and a $243 million revolving credit. New York-based Six Flags filed under Chapter 11 with 20 theme parks, including 18 in the U.S. The parks have 800 rides, including 120 roller coasters. The case is Premier International Holdings Inc., 09-12019, U.S. Bankruptcy Court, District of Delaware (Wilmington).

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I have mixed feelings about this. If we go through another corporate change then what will the new management do. Will they continue on with the current plan or will they switch back to the theme of thrill rides? I know one thing is for certain. These Noteholders are pushing harder than a cornered elephant, to get this company back. I wonder if they have big plans for the parks if they do manage to take control of the company. Or will they fix up the parks and then sell them to a bigger company?

 

It wouldn't surprise me if they spent a few years with the company and then try and strike a deal with Warner Bros for a buyout. Warner Bros just recently bought a majority stake in Rock Steady Games, which now strengthens their connection to the Batman Arkham Asylum franchise. If Warner Bros owned Six Flags parks, this could open up new ideas for possible indoor Arkham Asylum rides.

 

Never said it was going to happen. Just a thought I had in mind.

 

http://www.dailyherald.com/story/?id=362620

 

http://www.earthtimes.org/articles/show/warner-bros-home-entertainment-group-acquires-majority-stake-in-rocksteady-studios,1174604.shtml

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http://sanantonio.bizjournals.com/sanantonio/stories/2010/03/01/daily39.html

 

Six Flags Inc., owner and operator of San Antonio’s Six Flags Fiesta Texas and 18 additional theme parks, says attendance and revenue were both down in 2009 compared to the previous year. The New York-based entertainment company, which filed for Chapter 11 bankruptcy protection in June 2008, says those guests who did visit its theme parks spent less money on average in 2009 than they did the previous year.

 

Six Flags says its 2009 revenue totaled $912.9 million. That’s an 11 percent drop from the 2008 total of just over $1 billion. Company officials say that decrease is attributable to the fact that 1.5 million fewer people visited its theme parks in 2009 than in 2008 — a 6 percent drop.

 

Six Flags’ bottom line was also impacted by the fact that per capita guest spending — which excludes sponsorship, licensing and other fees — decreased 4 percent to $36.58 in 2009. Park admissions revenue per capita also decreased by 3 percent in 2009 compared to the previous year.

 

Six Flags says the attendance reduction was driven by a decline in group sales, as well as a reduced distribution of complimentary promotional tickets. Six Flags officials blame some of the attendance and revenue declines on the outbreak of H1N1, or swine flu, in Mexico and Texas last spring.

 

Overall, Six Flags incurred a loss from continuing operations of $205.9 million in 2009 compared to a $63.4 million loss in 2008.

 

In February 2010, in connection with the Chapter 11 bankruptcy filing, Six Flags decided to reject its lease with the Kentucky State Fair Board and it plans to cease operating a theme park in Louisville.

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http://finance.yahoo.com/news/Trial-begins-on-Six-Flags-apf-1952312850.html?x=0&.v=2

 

Six Flags Inc. on Monday began defending its proposed Chapter 11 reorganization plan, which would give holders of senior secured notes issued by its operating subsidiary more than 90 percent of the equity in the new company. Holders of junior notes issued by Six Flags Inc. would receive only about 5 percent of new equity under the plan and have proposed an alternative that provides full cash recovery to other creditors and leaves themselves in control of Six Flags. Six Flags, which owns about 20 amusement parks across the U.S., Mexico and Canada, sought bankruptcy protection in June 2009, burdened by high debt and declining park attendance by economically strapped consumers.

 

After months of discussions with debt holders and secured lenders, Six Flags dumped its initial reorganization proposal. It called for a debt-to-equity swap giving secured lenders 92 percent of the reorganized company's common stock and allowed bonuses for top executives of up to $30 million upon emergence from bankruptcy.

 

In its latest revision, the reorganization plan calls for $830 million in debt financing and a $450 million equity offering. Lenders would be paid in full, and holders of senior notes issued by Six Flags Operations Inc. would receive about 25 percent of the reorganized company's common stock, with rights to purchase an additional 70 percent.

 

Holders of SFI's junior notes remain opposed to the plan. Last week, they announced a financing commitment of more than $1 billion from Goldman Sachs and UBS for their alternative proposal. Their plan includes $1.1 billion in new debt and a $582 million rights offering, proceeds of which would be used to pay the SFO noteholders, led by Avenue Capital Group, in cash instead of stock.

 

A key issue surrounding the competing reorganization plans are the enterprise values they put on Six Flags. Experts for Six Flags and the SFO noteholders peg the midpoint of the valuation range at about $1.5 billion. Experts for the SFI noteholders and Six Flags' committee of unsecured creditors put the midpoint at close to $2 billion. Under the valuations of Six Flags and the SFO noteholders, the company's reorganization plan would result in those noteholders being paid less than the full value of their claims. Opponents of the plan argue that, because it is undervalued, the SFO noteholders will receive far more than the value of their claims.

 

Six Flags' chief financial officer, Jeffrey Speed, the first witness called in a scheduled two-week trial, testified Monday that further delays in emerging from bankruptcy could have a significant negative impact on the company, which depends heavily on the summer vacation season for much of its theme park revenue. "We believe the bankruptcy taint has not been good for business," Speed said under cross-examination by Christopher Shore, an attorney for the SFI noteholders. Speed noted that Six Flags conducts 80 percent of its theme park business is the second and third quarters, mostly in the June-August summer period. While a handful of parks opened last weekend, Speed said cash typically remains tight until the summer season kicks off on Memorial Day.

 

A delay in emerging from bankruptcy could affect sponsorship deals, group visits, and season pass sales, said Speed, who noted that, since the bankruptcy filing, Six Flags has seen a fivefold increase in calls from potential patrons, wondering whether its parks are open and safe.

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Well according to this, the already started the fight for the company. From the looks of it, the fight my prevent the company from emerging from bankruptcy.

 

http://www.google.com/hostednews/ap/article/ALeqM5i6VgwVIA3nGQWssTrs5b3dsgvyjwD9EAOAFO2

 

http://dealbook.blogs.nytimes.com/2010/03/09/six-flags-c-f-o-takes-stand-in-ch-11-battle/

 

* According to this article, there were numerous investors that were interested in the company. One of them struck my eye like a lighting bolt. (Apollo Management) was one of the companies that were interested in Six Flags. They also own the Cedar Fair properties.

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http://online.wsj.com/article/BT-CO-20100309-715968.html?mod=WSJ_World_MIDDLEHeadlinesAmericas

 

WILMINGTON, Del. (Dow Jones)--Creditors of Six Flags Inc. (SIXFQ) have found signs that life after bankruptcy for the troubled amusement park operation could include a combination with rival Cedar Fair LP (FUN).

 

Avenue Capital Management, the investment fund leading a drive to take over Six Flags in Chapter 11, sent representatives to Cedar Fair last fall, said Andrew Dash, attorney for the official committee representing Six Flags' committee of unsecured creditors. He's with Brown Rudnick.

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^I'd guess Great America, although both parks have their problems with a lack of space available, height restrictions, and neighbor troubles.

 

This could be very interesting, and if this does happen, I'd like to see what happens with licensing and season passes. Do they keep Warner Bros, Snoopy, both, or do they not have any? Also, do they keep Six Flag's season pass policy(hopefully) or Cedar Fair's? As long as they keep Six Flags season pass policy and Kinzel doesn't run the parks, I'll probably be happy. Definitely going to have to pay attention to this to see how it turns out.

 

V True, I just liked how cheap Six Flags pass is/was, but I'll still buy a pass with Cedar Fair's pricing structure.

Edited by Airtime&Gravity
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^if they want to be a viable company long into the future they adopt the Cedar Fair season Pass pricing policy.

 

A company can not make money with the Six Flags season pass pricing structure, sorry if that prohibits all the cheapos from bying a pass, but that's reality.

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This should be interesting to follow. I wonder if a chain of that size would start to run into any anti-trust issues. My hunch is that it would not be a problem, however I'm guessing some smaller parks would scream foul.

 

Now for the more business centric people out there I have a question that caught my eye. Why would anybody give credit to Six Flags and not take the steps to secure it? I understand the purpose of secure filings (as well as a disgusting amount of technical details behind them) however the concept of why creditors wouldn't file the paperwork remains beyond me.

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^if they want to be a viable company long into the future they adopt the Cedar Fair season Pass pricing policy.

 

A company can not make money with the Six Flags season pass pricing structure, sorry if that prohibits all the cheapos from bying a pass, but that's reality.

 

I agree. I like how Cedar Fair does things. And If they merge I think the current Six Flags management will be booted out and Cedar Fair will now run the show, which is what I'm hoping for. I always thought that Cedar ran better parks than Six Flags Inc. As for Warner staying, I could care less. The company did not really use Warner Bros to their highest ability. There are so many movies that they could have used to make rides. Not only that but D.C. Comics is very hard to get licensing agreements from. Cedar would bring newer elements to the park. Fright Fest would also be a lot better. Just look at what they did for Kings Dominion. They had at least eight haunted houses and they were all free. Good quality for for season events are what a lot of the parks need. Being family friendly is good, but the parks still need go thrills, chills, and spills if they want to improve.

 

I could also see a lot of the smaller parks improving under Cedar Fair's management. Advertisements, maintenance, friendly park staff, and better operation hours are what I am looking for under a Cedar Fair management.

 

Any thoughts on which Six Flags parks may be sold under Cedar Fair and which parks will be improved?

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