Great Adventure Outpost
Latest Updates => Park News => Topic started by: jglonek on May 03, 2010, 04:40:15 PM
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According to a statement released by Six Flags today, the company has come out of bankruptcy!
Here is the story from the Associated Press (http://www.google.com/hostednews/ap/article/ALeqM5i6VgwVIA3nGQWssTrs5b3dsgvyjwD9FFGG803):
NEW YORK — Six Flags Entertainment Corp. has emerged from Chapter 11 bankruptcy protection, the amusement park operator announced Monday.
Six Flags, which owns 19 amusement parks in the U.S. and other countries, sought bankruptcy protection in June, burdened by high debt and declining park attendance by economically strapped consumers.
The company said the terms of its restructuring were confirmed by the court as of Friday. Bondholders had been fighting over control of Six Flags and told a bankruptcy judge last week that they agreed to a revised plan.
Six Flags said the plan cuts its debt and provides for payment in full of all trade creditors.
The restructuring cut the company's indebtedness and redeemable preferred stock to about $1 billion from approximately $2.7 billion at the end of last year. That figure excludes seasonal drawings under the company's revolving credit facility.
The company said because of this, its annual cash interest expense will be reduced to about $75 million.
The terms of the restructuring also include $725 million in new equity committed by the new shareholders.
Along with the equity investment, the restructuring was financed by about $1 billion of senior secured credit facilities, and a $120 million revolving credit facility. An affiliate of Time Warner also agreed to provide Six Flags with a $150 million multi-draw term loan facility.
The company said it will apply to list the new common stock on the New York Stock Exchange.
CEO Mark Shapiro said in a statement that the restructuring means the company's "opportunities are no longer limited by the legacy debt levels. With our new balance sheet, we now have the financial strength to generate long-term sustainable growth while continuing to enhance the reputation and reach of our brand."
We are working on getting the full press release from Mark Shapiro, and will have it up as soon as possible!
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I just deleted my post... we literally posted the same story at the exact same time LOL
Anyway, this is great news!
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This is GREAT news either way!!!
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YES finally! Cant wait for 50th anniversery
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Some will find this ominous:
...At the court hearing to confirm the company's bankruptcy plan, Speed would not tip his hand regarding acquisitions to expand.
One likely target could be Cedar Fair LP (FUN.N), a Sandusky, Ohio, operator of 11 theme parks and seven water parks. Apollo Management recently dropped its $635 million planned takeover of Cedar Fair, a bid that was opposed by Q Funding III LP, Cedar Fair's biggest shareholder.
Q Funding, which is fighting to reshape Cedar Fair's board, has said in regulatory filings that the bondholders who now own Six Flags had approached them about merging the two theme park operators.
Q Funding and Six Flags did not immediately return a call for comment....
http://www.reuters.com/article/idUSTRE6422RF20100503 (http://www.reuters.com/article/idUSTRE6422RF20100503)
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Here is the official press release from Six Flags Entertainment.
PR Newswire
NEW YORK, May 3
NEW YORK, May 3 /PRNewswire/ -- Six Flags Entertainment Corporation (formerly Six Flags, Inc.) announced today that it has completed its balance sheet restructuring and emerged from Chapter 11. The terms of the restructuring were confirmed by the Court effective as of April 30, 2010.
The restructuring reduced Six Flags Entertainment's indebtedness and mandatorily redeemable preferred stock from approximately $2.7 billion at December 31, 2009 to approximately $1.0 billion at emergence (excluding seasonal drawings under the company's revolving credit facility at emergence). As a result, the Company's annual cash interest expense will be significantly reduced to approximately $75 million. The restructuring also included $725 million in new equity committed by the new shareholders. The plan also provides for payment in full of all of the Company's trade creditors.
"This reorganization constitutes the final step in the repositioning of Six Flags," stated Mark Shapiro, President and CEO of Six Flags Entertainment. "Since the new management team arrived in 2006, we have concentrated on broadening our audience base by improving the product offering. In that vein, we instituted significant operational changes – upgrading and investing in the appearance and cleanliness of the parks; creating a more diversified family entertainment experience; growing in-park revenue by increasing length of stay and offering guests high quality brands; elevating guest service through targeted staffing initiatives; and growing sponsorship and licensing revenues."
Mr. Shapiro continued, "Now, with the restructuring completed, the Company's opportunities are no longer limited by the legacy debt levels. With our new balance sheet, we now have the financial strength to generate long-term sustainable growth while continuing to enhance the reputation and reach of our brand."
Coupled with the equity investment, the restructuring was financed by approximately $1.0 billion of senior secured credit facilities, and a $120 million revolving credit facility. In addition, an affiliate of Time Warner agreed to provide the Company with a $150 million multi-draw term loan facility to be used to fund annual Partnership Park put obligations above specified levels.
Application will be made to list the new common stock of Six Flags Entertainment on the New York Stock Exchange.
About Six Flags:
Six Flags Entertainment Corporation is a publicly-traded corporation headquartered in New York City and is the world's largest regional theme park company with 19 parks across the United States, Mexico and Canada.
SOURCE Six Flags Entertainment Corporation
http://boston.bizjournals.com/prnewswire/press_releases/New_York/2010/05/03/NY97381 (http://boston.bizjournals.com/prnewswire/press_releases/New_York/2010/05/03/NY97381)
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More speculation Six Flags Entertainment Corporation may acquire Cedar Fair:
http://www.minyanville.com/businessmarkets/articles/six-flags-dan-snyder-bankruptcy-debt/5/4/2010/id/28107 (http://www.minyanville.com/businessmarkets/articles/six-flags-dan-snyder-bankruptcy-debt/5/4/2010/id/28107)
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Funny. In the comment section the author states that they were not aware of Cedar Fair's large debt. Maybe the tone of that part of the article would have changed significantly had he known that.
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Isn't it amazing when so-called sophisticated investors/writers have not done even the most basic due diligence before advising others/taking action?
Not unlike, say Dick Kinzel before the firm he in essence then controlled bought Paramount Parks for an astoundingly huge sum back in 2006?