Tuesday, April 6, 2010

Cedar Fair and Apollo Officially Terminate Purchase Plans

Cedar Fair has announced that they have officially terminated the plan to be purchased by Apollo Management. In a press release, CEO Dick Kinzel said "The board has heard from Cedar Fair unitholders and it is apparent that the merger transaction does not have the required level of investor support."

As we well know, several large investors very publicly were against the sale, and urged fellow unitholders to vote against it. Cedar Fair had already postponed the vote date to this Thursday, I'm assuming in hopes of changing investors minds. At this point it's clear that that was not going to happen.

Now that the company will remain public, they again have some troubling issues with their current debt load. While this deal failed, I'd expect some other radical changes to take place in the near future in order for the company to continue to exist.