Six Flags Declares Bankrupcy

[sleepy]

I hope this doesn't mean the end. P.S. I've found Bill Gates!
http://www.nytimes.com/2009/06/14/business/14sixflags.html?ref=business

Deep in Debt, Six Flags Is Bankrupt

By MICHAEL J. de la MERCED
Published: June 13, 2009

Six Flags, the theme park operator, filed for bankruptcy early Saturday in Delaware after failing to reach an agreement with lenders to reorganize its debt.

Six Flags is the latest company to prove unable to cope with its debt load at a time when previous solutions like refinancing are largely unavailable. The theme park operator, which had $2.4 billion in debt, faced nearly $300 million in payments to preferred stockholders due in August.

In a statement, Six Flags said it was seeking court approval for a restructuring plan it had already negotiated, which has the unanimous approval of its lenders. That proposal would eliminate $1.8 billion in debt and slice off the $300 million in preferred stock payments.

“The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets,†Mark Shapiro, the chief executive of Six Flags, said in a statement.

The filing is a blow to Dan Snyder, the owner of the Washington Redskins, who took control of Six Flags in 2005 after waging a proxy fight and holds about a 6 percent stake in the company. He sought to turn around the company by installing new management, led by Mr. Shapiro, and selling underperforming parks. They improved the remaining parks by banning smoking, increasing security and having more costumed characters like Tweety on the grounds.

Other major investors include Cascade Investment, controlled by Bill Gates, which held an 11.1 percent stake, and the hedge fund Renaissance Technologies, with a 5.5 percent stake.

Six Flags said in its statement that the filing came despite a good 2008, in which the company cut its net loss to $135 million from $275 million a year ago. Its net loss for the first three months of 2009 narrowed nearly 7 percent from the period a year earlier, to $146.3 million.

But the company had a 24 percent drop in revenue over the same period, affected by lower attendance at its parks and less spending by customers.

 

[Isaac Sauvage]

so they restructure, some of the investors get hosed, and then what? ...back to normal?

btw, this was the funniest line for me:

They improved the remaining parks by banning smoking, increasing security and having more costumed characters like Tweety on the grounds.

rather onionesque, no?


i really need some courses in economics, particularly when it comes to the national scale. i still don't understand how the US continues to stay afloat, given that the populace are the greatest consumers of goods / resources in the world, that our labor is probably the most costly in the world, and that our greatest production of resources is probably factory farming, in particular grains, in particular corn and wheat. i mean, it sounds like part of the solution is to leverage debt on an enormous scale to other countries, but how much longer can this go on before global fallout?

when does the disconnect between imaginary sums and actual goods produced / consumed become a problem?

 

[sleepy]

It's interesting that you bring up farming, because Magic Mountain was founded by The Newhall Land and Farm Company with involvement by Rick and David Nelson (Ozzie and Harriet).

No, at some point the investors are going to burn. The bailouts and leverages cannot continue. Currently I think the switch to Digital t.v. may have been an economic ploy by Bush due to the 'stimulus' of everyone suddenly replacing their sets, but it didn't work out for Circuit City, did it?

What we need is product innovation by human leadership and not by faceless corps. The corps are not inspiring. They are depressing, and in times past it has always been a human figure at the helm of his/her successes that inspires. Imagine a NASCAR tourney with no names or faces, only names of companies while the drivers hide behind tinted windows.

 

[m4paws]

Six Flags doesn't view it as the end at all, in fact they believe that the "reorganization will ensure that our parks will continue to entertain millions of guests for another 50 years". They claim 2008 was a record year for them, but the debt from the previous management team has forced them into this position. In a letter to the employees, the key point made to them was: "Our brand and our operations are on solid ground. This process is strictly a financial restructuring of our debt and that’s how you should view it and speak about it."

Quote source and full text of letter from Six Flags CEO:
http://www.sixflags.com/national/footerNav/News_OpenLetterFromOurCEO.aspx

 

[m4paws]

Reading the FAQ, they paint the rosiest picture possible with zero down-side.

http://www.sixflags.com/national/footerNav/frequentlyaskedquestions.aspx

 

[Mudfinger]

In a letter to the employees, the key point made to them was: "Our brand and our operations are on solid ground. This process is strictly a financial restructuring of our debt and that’s how you should view it and speak about it."

This is EXACTLY what we at Circuit City were told back in November.

 

[Isaac Sauvage]

so who usually loses money in these bankruptcy restructurings?

the lenders? the executives? the stockholders? the employees? the public?

and what is the point of the lenders refusing to restructure the debt? ...forcing the corporation to go bankrupt such that they... restructure the debt?

 

[sleepy]

Six Flags reported that they plan to slice off a chunk of the stock dividends.
The lenders refused to restructure due to a $2.4 Billion deficit allegedly the result of previous management while the company pulled in over $270 Million last year, the exact figure escapes me a.t.m. Of course the current financial crisis will not allow any creative refinancing of such an outstanding sum.

Sounds like 'previous management' dabbled in real estate/Wall St. investments to shore up sagging revenues during down times. Several of the parks including Magic Mountain were offered for sale in 2006.

 

[Isaac Sauvage]

thanks, and i'm going to start listening to podcasts from this section- "understanding the economy":
http://itunes.apple.com/WebObjects/...908&genreIdString=26&mediaTypeString=Podcasts

handy to have when i'm taking a walk around the neighborhood / cemetary / park.

 

[Rick2007]

Six Flags has sucked years ago for Me.
30 Years later ,,, And I am Still Pissed Off.
I had a very bad Six flags experience Years ago that made
Me swear that I would NEVER go back.
The Park let in so many people that the ride time was as much as
6 hours per ride. That means,,,,,,, stand in line for the entire day and
be lucky to ride 2 coasters.
We payed about $25 each to get in,, and walked around the park trying to find
something/any thing that might be fun for our $50 bucks.
We found nothing..... All of the lines were Many hours long. This Was At Six Flags just across the Wisconsin/Illinios border.

My wish is that they stand in line at bankruptcy Court for at least 6 Hours
with no food or water and the temp at over 90 degrees.
Just like they wanted Me to do!!!!

Rick

 

[RockWizard]

Amen Rick!! This company sucks....plain and simple. Had season tickets for Jazzland(before SF bought them) since day one. Really hoped things would be run better like a *real* amusement park. No, never happened. Poor management, rides always broken and took time to fix. "Went to Orlando a few years before Katrina and saw how a REAL park is run, even told a few of these bozos to go down there and take notes! With all the land they had in the aquisition, you'd think they'd expand the park and put some REAL rides(rollercoasters!). NOPE. Katrina comes, puts the park under water for weeks. Then they start dismantling the park thus decreasing the value for a potential buyer. City had to have an injunction in place to stop them.

BURN in hell you bastards. You'll get no pity from me and the legions of loyal season ticket holders.

 

[panootz]

When i was about 10 years old which was 1979 we went to Six Flags Great Adventure and had the time of our life, a few years ago we went up to see family in new york so we decieded to stop at Great Adventure because we hadn't been their in years. And Rick your right, we found out the place had changed a lot more rides but too many people so the rides lines were way too long (in case you don't know Great Adventure is in New Jersey). Then when we got to Millbrook N.Y. were we used to live when i was a kid we decieded to go to Lake George, N.Y. and go to the village and hit the Arcades, and Wax Museums, well anyway we went to The Great Escape fun park like we used to do when i was young the place was packed way too much, it was never like that 10 years ago, then we found out that the park was going bancrupt so Six Flags bought the park so again that's why it was so crowded. I live in Punta Gorda FL. and for many years Six Flags was supposed to build a theme park either at Tuckers Grade not too far from me or in North Port which is about 45 minutes from me. They still own the land in the two places but i doubt their going to build anything now that their in trouble. Let's just hope we see changes in the company and they get better, we can only wish. Dave P.

 

[Isaac Sauvage]

i never understood the whole amusement park thing, anyway-

costs you a fortune to get in, then bleeds you dry the whole time you're there with food, carnival games and stuff. meanwhile you're competing against crowds the whole time to get anywhere or do anything (like taking the rides) while screaming kids are running everywhere.

just seems like it would be more equitable if you paid per ride, like at the fairs or old time amusement parks. plus you wouldn't feel the pressure to stay as long as possible in order to get your money's worth, essentially blowing the whole day.

 

[sleepy]

I don't think so, not like Disneyland with the ticket book. They used to charge admission which included the book with the famous "E Ticket", (2) per book. Then you could buy additional books inside the park. Since most people show up for the attractions anyway, it makes little difference. Even now the *I think* "Golden Horseshoe Revue" is an in-park supper club-type show which requires reservations inside the park at the entrance to the show because it fills up fast.

I see it like a theater. There are only so many seats available, so why not limit the number of admissions at the front gate to 90 % of the park's doable capacity while allowing for reservations and using the remaining 10% capacity for out-of-town guests?
Add an online/text phone system of checking the capacity before you go there and find out it's already filled.

I wanted to see a reservation system inside the park for the lines to each ride. Just check in at the ride entrance and pick up a time stamp that tells you when to return to enjoy the attraction without the excessive 30-90 min. wait time.
Disneyland tried it but I don't know if they're still using that system or not.

 

[studmuff]

Six Flags has sucked years ago for Me.
30 Years later ,,, And I am Still Pissed Off.
I had a very bad Six flags experience Years ago that made
Me swear that I would NEVER go back.
The Park let in so many people that the ride time was as much as
6 hours per ride. That means,,,,,,, stand in line for the entire day and
be lucky to ride 2 coasters.
We payed about $25 each to get in,, and walked around the park trying to find
something/any thing that might be fun for our $50 bucks.
We found nothing..... All of the lines were Many hours long. This Was At Six Flags just across the Wisconsin/Illinios border.

My wish is that they stand in line at bankruptcy Court for at least 6 Hours
with no food or water and the temp at over 90 degrees.
Just like they wanted Me to do!!!!

Rick

You really need to go to theme parks early when they open to get on coasters fast. Get there in the first hour and ride 4 coasters.

 

[Rick2007]

You really need to go to theme parks early when they open to get on coasters fast. Get there in the first hour and ride 4 coasters.

I will tell You MORE Secrets,,,,,
We go to Disney World in the fall or just before spring vacation. The lines are short and the weather is not so hot. If it rains just take in an indoor
venue. Almost always the rain is done when you come out.
I can go on almost any and all rides I WANT TO IN A SINGLE DAY!!!!!

And another "Not so Secret" Secret,,,,,,,,,,When You enter the Park
"Any of them" Do Not Get in the first line you see. Pass by any long lines at the Rides toward the front. Most New people will stand in the first line they see. DON'T DO THAT. GO DEEP into the park and work the rides more from back to front.

Also people seem to eat Lunch later than normal at Theme Parks,,, So lunch is hard to find,,,,,,,, long lines around 2pm. Eat Early or later than 2pm.

I have more Secrets to enjoy Disney World,,,,,,,,,I have been there
more than ten times, and have done many dumb things that made my
wife tell me that I am several cards short of a full deck.

My latest tip might be to ride the Boat over to the Magic Kingdom
rather than the DEATH TRAP Monorail,,,,,,,,,,Hmmmmmmmmmmmm.

Rick

 

[sleepy]

I went to Disneyland on a rainy day once. It was zero waiting time, and I rode Big Thunder Mountain with the rain hitting me in the face all along the outside portions of the track.
I was the only rider. Inclement weather at an amusement park is a plus, but only if they don't shut down the rides. If they shut down the rides, then ask for a rain check.

 

[elton]

I've only been to Disney once; that was in LA during October 2001 after the September 11 atrocity. The park was pretty empty as most people would not travel. Only 3000 peeps there on each of the 4 days we visited. It was quite odd at times to see 60' wide pavements with only a handful of people walking along them. It was nice to be offered to stay on a ride and overall the children were very spoilt in being able to take whatever rides they wanted whenever they wanted and having the characters fuss over them. Having said that, we probably missed out on some atmosphere due to lack others - but the attention given to us as a family by the staff and local attendee's probably made up for that. I'd love to return but am not sure how I'd cope with possibly 80,000 others there and queues for every ride.
The weather was glorious for a first holday to the US and the overall experience wonderful.

 

[LaughingOtter]

Used to be Magic Mountain back in the San Fernando Valley in the 1970s before Six Flags bought it. All the tourists would go to Disneyland, all the locals went to Magic Mountain because they had the real rides. Yeah, it DID suck when you had to wait hours to ride the Revolution (one of the first coasters with a 360-degree vertical loop) or Colossus (which was an all-wood-frame coaster), but as Studmuff said, getting there early (as in before noon) made all the difference and you could have a couple of goes at the big rides before the sheeple arrived.
Then Six Flags bought the place out, the Banana Splits disappeared as mascots (along with The Magic Mountain Wizard), and the place went to crap in a few short years.
An interesting comparison here, though: While I was in high school (1977-1980), a number of fellow students were able to land summer jobs at Disneyland and Magic Mountain. The Disney kids were almost to a person more uptight and high-strung. Most of the Magic Mountain kids were really laid-back and threw the best parties.

 

[Isaac Sauvage]

maybe there were magic mushrooms on magic mountain.

fleagle, bingo, drooper and snork...

 

[studmuff]

I will tell You MORE Secrets,,,,,
We go to Disney World in the fall or just before spring vacation. The lines are short and the weather is not so hot. If it rains just take in an indoor
venue. Almost always the rain is done when you come out.
I can go on almost any and all rides I WANT TO IN A SINGLE DAY!!!!!

And another "Not so Secret" Secret,,,,,,,,,,When You enter the Park
"Any of them" Do Not Get in the first line you see. Pass by any long lines at the Rides toward the front. Most New people will stand in the first line they see. DON'T DO THAT. GO DEEP into the park and work the rides more from back to front.

Also people seem to eat Lunch later than normal at Theme Parks,,, So lunch is hard to find,,,,,,,, long lines around 2pm. Eat Early or later than 2pm.

I have more Secrets to enjoy Disney World,,,,,,,,,I have been there
more than ten times, and have done many dumb things that made my
wife tell me that I am several cards short of a full deck.

My latest tip might be to ride the Boat over to the Magic Kingdom
rather than the DEATH TRAP Monorail,,,,,,,,,,Hmmmmmmmmmmmm.

Rick

Absolutely agree with you. I was at DisneyWorld and about 2-3 o'clock the place was a zoo. 2 hour waits for popular rides (crazy).
Unfortunately, my 3 year old son loves the monorail and is his favorite.
The other thing I wish I could aviod are the character breakfasts. My God, it cost me over $70 for My wife, 2 kids (bay was free thank god) and myself. It was good but I don't remember having filets and champagne.

Tom :)

 

[sleepy]

The Disney kids were almost to a person more uptight and high-strung. Most of the Magic Mountain kids were really laid-back and threw the best parties.

Yeah, the Disney folks can be very pro about things and life in general.

 

[sleepy]

I didn't even know about this one. The Hard Rock Park in Myrtle Beach.
It was only open for six months!

<center><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/sUAs7ULkXyY&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/sUAs7ULkXyY&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object></center>

And a fireworks show at the park featuring Bohemian Rhapsody. Needs to be re-recorded.

<center> <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/9u9NXgnorZM&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/9u9NXgnorZM&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object></center>

 

[Joe]

This is EXACTLY what we at Circuit City were told back in November.

But you can't shut down and sell off a six flags park like you can with a Circuit city. May be the packs can become there own.

 

[RockWizard]

I didn't even know about this one. The Hard Rock Park in Myrtle Beach.
It was only open for six months!


<CENTER><EMBED height=344 type=application/x-shockwave-flash width=425 src=http://www.youtube.com/v/sUAs7ULkXyY&hl=en&fs=1& allowfullscreen="true" allowscriptaccess="always"></EMBED></CENTER>

And a fireworks show at the park featuring Bohemian Rhapsody. Needs to be re-recorded.


<CENTER><EMBED height=344 type=application/x-shockwave-flash width=425 src=http://www.youtube.com/v/9u9NXgnorZM&hl=en&fs=1& allowfullscreen="true" allowscriptaccess="always"></EMBED></CENTER>

According to Winkipedia, the park was bought and renamed, rides included.