Financial Woes Unlikely to Affect Great Adventure

[PcMan]

This was an interesting article that was published in the Asbury Park Press yesterday about Six Flags and its not so much effect on Great Adventure.

Six Flags Great Adventure in Jackson will operate business as usual this summer, a park official said Thursday, even as its parent company weighs bankruptcy in a scramble to pay back investors.
Advertisement

Angel Aristone, a spokeswoman for the Jackson theme park, said Great Adventure is profitable. It isn't raising the daily admission fee of $39.99 online or $49.99 at the gate. And it is turning its attention to new attractions.

"These back-of-house issues will have zero bearing on our park or day-to-day operations," Aristone said. "Great Adventure is profitable and preparing for our best season ever with more of our guests staying closer to home."

New York-based Six Flags said this week that it may need to file for Chapter 11 bankruptcy if it can't reach a deal to restructure almost $300 million in preferred stock, which is due in August.

A bankruptcy filing would allow the company to continue to operate while it works to improve its financial footing. But the discussion of bankruptcy, laid out this week in a filing with the U.S. Securities and Exchange Commission, shows the company is feeling the stress of the declining economy and the slow credit markets.

"The options are not particularly pretty," said Andy Liu, an analyst with Standard & Poor's in Chicago.

Six Flags has struggled to become profitable since Washington Redskins owner Daniel Snyder bought the company in 2005 and turned it over to former ESPN executive Mark Shapiro to manage.

The new team has tried to return to basics of family entertainment, particularly at Great Adventure, which S&P said had suffered from under-investment from its previous management team.

There were signs last year of improvement. Six Flags' companywide revenue grew 5.2 percent from 2007, despite a cut in prices. And the company's loss narrowed to $113 million from $253 million in 2007.

But it faces an Aug. 15 deadline to pay investors some $300 million. If not, it would would be considered in default with other lenders as well, Liu said.

The company's options are limited, particularly because many banks still are reeling from bad loans they made earlier in the decade. For example, Six Flags could drum up new investors or sell assets to pay its debt, but few banks would finance those deals, Liu said.

"It's kind of difficult to predict these days, with the credit market and banks under so much stress," he said.

Meantime, Aristone said Great Adventure is focusing on the season at hand. The company has spruced up its Medusa roller coaster ride by adding special effects such as fog, fire and onboard audio.

And it hired Pyrotechnico, an award-winning fireworks company, to produce Saturday-night fireworks shows that Aristone likened to "fireworks on steroids."

The park's opening day is April 4.

Source

[coastermom]

I wonder how this is going to make 2010 ?

[overlord]

Fire on Medusa?! FIREWORKS ON STEROIDS! Holy Cow all the new things coming!

[Bubba Z]

Barry Bonds over the lake, that must be expensive.  Couldn't we just use jose' Canseco

[WadeJ]

The media has begun focusing in on their next big target to slam.  I guess the banks are getting too boring now.

Anyway, things might change in the coming year or two regarding perhaps a property or two but I have to believe that Great Adventure really is safe.  It has to be the #1 or close to #1 property in the chain and the entire company is on the fast track to success.  I personally believe they will pull something off later this year as the banks slowly recover and they'll be fine.  Chapter 11 IMO is the WRONG move!

[jglonek]

Fire on Medusa?! FIREWORKS ON STEROIDS! Holy Cow all the new things coming!

There was supposed to be fire on The Dark Knight too..

[overlord]

That was also with the old construction manager as well...so be hopeful you negative Nancy.

[jglonek]

Who is the new one anyway?

[overlord]

Obviously Clawshun Industries, like everyone knows that.

[Ogolo]

It seems that the GP have latched onto all this "Chapter 11" news reporting.
Several people have commented to me on how their season passes are now worthless or that the park isn't opening this year.

[overlord]

In the event of a sale, I would think that whatever company bought Great Adventure, all the current season passholders would be allowed admission to that park.

[nitrorox1414]