Tuesday, December 21, 2010

Ho Ho Holiday Drama at Cedar Fair

While Cedar Fair has agreed to hold a special unit holder meeting to vote on Q Investments requests on January 11th, that doesn't mean it hasn't come without a bit of corporate level drama.

At this point there's so much he-said she-said going back and forth between Cedar Fair and Q Investments it's hard to keep track. When Cedar Fair didn't schedule the special meeting fast enough, Q Investments sued them.  Cedar Fair in turn outlined why Q Investment's requests were bad for the company in a detailed solicitation to unit holders, and Q Investments then did the same.

Naturally you can read the details of each of their sides on the issues, but it is after those were filed that things got interesting.  Q Investments started running this ad in the financial trades:

Which makes it pretty perfectly clear how they feel about Dick Kinzel's financial leadership of Cedar Fair. 

At some point Q Investments mentioned that COO Jack Falfas left the company under "curious circumstances," which Cedar Fair did not take kindly to.  They wrote another letter to Q Investments, where the say that Jack resigned from the company.

Well now in a big ol' booya moment, Q Investments has filed another letter to Cedar Fair that includes a letter from Jack Falfas' lawyer explaining that he did not resigned but was "terminated without cause."  The letter also asks the company "When were you planning on coming clean and telling people the real story?"

Now things are getting nasty!  Can't wait to see where it goes from here, but I have a feeling it involves scribbling expletives on lockers and possibly an after school standoff at the flag pole.


Surya said...


I don't know enough about Kinzel and his ability to be both chairman and CEO, they might have a point there, but Cedar Fair should be able to decide for themselves how much dividend they want to pay, and how much money they want to keep in the company for future investments.