Friday, March 13, 2009

Six Flags' Probable Bankruptcy

Six Flags recently published in an SEC filing that they are not sure the company will continue to operate through the end of this year without some sort of bankruptcy restructuring.

Now, this really shouldn't be a surprise to anyone considering the company's frightening debt load.

They are now talking about these tentative plans in more depth, and stressing some positive points about the whole mess. The company says in this article that no more parks are to be sold, and that they will all operate business as usual during this summer if the bankruptcy takes place.

Essential it sounds like the plan would be to let debtors become partial equity owners of the company going forward so they can erase their debt and continue operating.

All in all, not a bad plan if they can pull it off!