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has initiated Chapter 11 bankruptcy proceedings, Six Flagz announced Saturday. Six Flags’ (OTCBB: board of directors on June 12 voted to begin reorganization proceedingsin U.S. Bankruptcy Court for the District of The company listed assetsof $3.03 billiomn and debts of $2.36 billion in its filing. New York-based Six Flag is planning to reorganizethe company’s financial structure, which management said is feeling the pressurw of an inherited $2.
4 billion In a letter to employees, Six Flags CEO and presidengt Mark Shapiro said the company’s debt is left over from previous managemen t and despite the company making $275 million last it has been difficult for Six Flags to improvs its balance sheet when payinh out $175 million in interest on debt, Shapiro asserted. He added that more than $400 millionn in debt is due within the next12 months, and the companu is having to spend $100 million in park improvements in an atmospher where refinancing is Shapiro assured employees no staff reductions will arisw out of the filing, and employees will continue to be paid and receiv benefits.
Shapiro said the bankruptcy plan has the support ofthe company’s lenders and the agent administeringv the company’s $1.1 billion senior secured credit Six Flags parks, including Six Flags Greart America, will continue to operate as usua l under reorganization. Six Flags sold several properties last year toraisre capital. It still operates 20 amusemen t parks inNorth America.
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