Turning the Page - Six Flags out of Bankruptcy

[Goku1910]

Six Flags confirmed the finalization of the company's restructuring through facebook.

Source: http://www.facebook.com/#!/topic.php?ui ... opic=15482

"It is with distinct pleasure that I inform you that effective today the plan of reorganization for Six Flags has officially been confirmed by the bankruptcy court.

Before explaining what this means to the Company, I want to emphasize in the strongest, most sincere terms, my admiration for the fortitude, focus and faith you have displayed despite the background noise of restructuring. I realize how frustrating, exhausting and perhaps dispiriting the last year has been. Still, you held firm and pushed through it all with remarkable dedication. Because of you and our unwavering investment in the product, our operation remains sound, our parks look better than ever, and our brand has never stood taller.

Over the next several days, the lawyers will finalize a multitude of details, and when the dust settles, Six Flags will have reduced its debt and mandatorily redeemable preferred stock from $2.7 billion last summer to approximately $1.0 billion (excluding seasonal drawings under our revolving credit facility at emergence). While we desired to achieve a lower debt level at emergence, keep in mind that our annual cash interest expense will have been significantly lowered to approximately $75 million. We also will have $725 million in new equity committed by our shareholders.

It would be hard to overstate what this new balance sheet means to the Company. Gone are the days when we were forced to pass on opportunities to improve our product and extend our brand because we simply couldn’t afford even a well-vetted and calculated risk. This, however, does not mean that we have an open checkbook. We always will be bound by our fiduciary responsibilities to all stakeholders, and accordingly must carefully weigh the wisdom of each new expense or capital investment. However, now that we are no longer wearing a fiscal straitjacket, we are free to evaluate new opportunities strictly on their merits.

I would be remiss if I didn’t remind everyone that having weathered this difficult and lengthy restructuring process, we need to continue to provide our guests with the best entertainment experience in our industry. Although we will not have to work under a crushing burden of debt, we still face formidable challenges from old and new competition made all the more difficult by the current economy.

Beginning today, we must re-dedicate ourselves to the proposition that our customers expect and deserve the friendliest, safest, cleanest and most prompt service. Our future success rests on our ability to provide an unforgettable experience. While we now have the financial strength to improve our product and to enhance, expand and extend the reach of our brand, it would be tragic if we forgot – or neglected – the road we traveled to reach this mark.

This day should indeed be celebrated, but is not the time to become complacent. We must stay the course, keeping our concentration, intensity and pride. Over the last few years, we have strengthened our company-wide bond and honed our skills. Now, with a new wind at our back, we are fully prepared to surge confidently into the future. Our potential has been multiplied and we must rise to the challenge. In my many discussions with our new Board of Directors, some of whom are continuing their service, I can assure you that the new Board is fully committed to our operational and strategic vision.

This chance will never come again. We’ve got our company back. Let’s reinvent and redefine the Six Flags Entertainment Corporation for every guest that walks through our gates.

I’m walking side by side with you.

Mark"

[Cole]

Go Six Flags!

[ Post made via Mobile Device ]

[bobbinbop20]

Well that was inspirational

[onyxhotel08]

Quite the speech

[forddude1416]

I like it for the fact it seems like Mr. Shapiro wrote it himself. It's not just a form letter.

[Cole]

Shapiro- 1
Kinzel- 0

[ Post made via Mobile Device ]

[david]

A new beginning for this very troubled company. I applaud all involved.

[DejaVu2001]

I applaud all involved.

OMG. David just applauded Shapiro. In other news, Hell froze over

[Bob O]

While SF is out of bankruptcy(for the time being??), lets not forget that alot of people who invested in the company did lose money due to the inept management of the past and current management.

Also 1 billion dollars is still alot of debt for a company that hasnt made a profit in many years, lets hope they can turn things around and pay down the debt while still providing a great guest experience.

[Galvan]

^

But its a start on getting to the right track. ALOT better then what the old regime could have ever dreamed of. And head and shoulders above what Cedar Fair has done. Since they have the same debt as SF used to, yet sees no problem plunking down 2 20+ million dollar coasters.

Typical Bob O response, alot of jibberish no real thought process and over all generally a negative comment.

[onyxhotel08]

2.7 billion down to 1 billion is a HUGE cause for celebration. Wasn't Kingda Ka their last major addition? And that was what like 6 years ago?

[Bob O]

Typical ignorant/pollyanna type galvan315 response!!!!

Typical as everything SF does he thinks is fine, and uses it as a way to take a swipe at Cedar Point, which is off topic. And shows no concern for the many people who lost money as a result of this deal and still thinks it is positive that a company that has shown no ability to make money will somehow change that and pay off the billion dollars it owes, plus the many millions of interest it will take to cover the long term debt the company has.
While is it a positive to reduce debt by screwing investors due to your companies incompetence, it is another to pay down the debt that your company has when it has little history of doing so. There aren't alot of positives when a company is still a billion dollars in debt when with no firm plan in place to pay it off. It isnt easy to pay off a billion dollar debt when a company has to sharply reduce admission/season pass's to get people to come thru the front gate.

I wish the company well, but if anyone thinks this ends the companies dire fiscal issues, then they should share what some here are smoking!!

[Galvan]

First of all I have no idea who the hell Galvan315 is.

Secondly, if you'd paid attention to the reports (which im sure you didn't) The shareholders in part where responsible for the reorganization plan for Six Flags.

Third, get off your soap box about "people losing money" Thats the risk you take in the stock market, especially for an entertainment company that has multiple factors to contend to. Also, in case your wondering your darling Cedar Fair is down 8% fiscal year in sales growth, and ALSO is 2 Billion+ in debt. But, that doesn't matter to you Bob O. because obviously CF is better then SF, even though customer satisfaction numbers speak differently.

So, before you run your mouth off spewing nonsense, try looking up some information before you do. Youll find.... and i know this might sound like a shock here. Your wrong.

[Goku1910]

Galvan snapped on him!

[monsterfan99]

First of all I have no idea who the hell Galvan315 is.

Secondly, if you'd paid attention to the reports (which im sure you didn't) The shareholders in part where responsible for the reorganization plan for Six Flags.

Third, get off your soap box about "people losing money" Thats the risk you take in the stock market, especially for an entertainment company that has multiple factors to contend to. Also, in case your wondering your darling Cedar Fair is down 8% fiscal year in sales growth, and ALSO is 2 Billion+ in debt. But, that doesn't matter to you Bob O. because obviously CF is better then SF, even though customer satisfaction numbers speak differently.

So, before you run your mouth off spewing nonsense, try looking up some information before you do. Youll find.... and i know this might sound like a shock here. Your wrong.

I do agree with you 100% on it being a risk to invest (and what a beyond stupid idea to invest in an amusement park chain.) However, the common stock shareholders were left high and dry. The only shareholders who got any part of the new company were those with either preferred or had debt that was in a stake of the company. It's all park of the risk of investing and most of the morons that did invest in Six Flags did so with their heart and not their mind.

[guitarhero119]

And shows no concern for the many people who lost money as a result of this deal and still thinks it is positive that a company that has shown no ability to make money will somehow change that and pay off the billion dollars it owes, plus the many millions of interest it will take to cover the long term debt the company has.
While is it a positive to reduce debt by screwing investors due to your companies incompetence, it is another to pay down the debt that your company has when it has little history of doing so.

Eliminating 1.7 Billion Dollars of Debt is no small accomplishment. Did they really screw their shareholders? I say no. SIX was trading right around 15 cents approximately. In my opinion, if you sat there with the stock as you saw it go down the hole then, quite frankly, you deserve to lose out on that deal. Thats the way the stock market works its not all sunshine and rainbows.

To address your second issue, a billion is still a lot. I have to agree with you there, but I truly believe that Shapiro has the company headed in the right direction. If they really play up that people should save money in this economy by taking a more local vacation, I think six flags is actually looking quite good.

But who knows I could be completely off on this one. But the next two years will be huge indicators as to how the company will be in the future.

[david]

Does anyone know if Six Flags was at all involved with the American Recovery and Reinvestment Act of 2009? Did they receive any money?

Yes! I really don't hate Shapiro, I dislike some of his business choices, but I don't hate him. That was a silly joke of the old management. HA! I'm back. No but in all seriousness, the Six Flags brand was at risk. If Shapiro never came in, we might not have Six Flags Great America.

[Goku1910]

Does anyone know if Six Flags was at all involved with the American Recovery and Reinvestment Act of 2009? Did they receive any money?

Yes! I really don't hate Shapiro, I dislike some of his business choices, but I don't hate him. That was a silly joke of the old management. HA! I'm back. No but in all seriousness, the Six Flags brand was at risk. If Shapiro never came in, we might not have Six Flags Great America.

^Hell really has frozen over....

[wishman35]

I am still more impressed with the Cedar Fair parks though... they just have a good feel to them, good rides, and no corporate sponsorship being jammed down your throat at every corner.

With that said, I will still enjoy going to Six Flags throughout the summer. I am glad they have made progress in some fashion.

[Galvan]

^

A good feel to them? Seriously your going to say that the CF parks have a good feel to them.

Obviously you've never been to Dorney Park, Michigan's Adventure or Cedar Point before, because if you did, you'd never say these parks have "a good feel to them".

The only "feel" these parks have is the feel of a concrete jungle.

[Goku1910]

^I can tell you have some hatred for Cedar Fair...I have never been to one of their parks, so I can't really comment on that.

[Galvan]

I dont have any hatred for CF, I just find it outrageous that CF does pretty much the same things that SF used to do, yet all is fine, yet SF is always shown to be this do no right entity.

I am on board with pretty much most of what Shapiro has implemented to help turn around SF, and its been working. Whereas Cedar Fair is pretty much using the old SF management playbook, and well its got them a HUGE amount of debt, and they still are slapping down 25 to 30 million dollar coasters like no tomorrow.

Its pretty safe to say, that Kinzel has really lost touch in operating his CF enterprise.

[w00dland]

Galvan your a Six Flags fanboy and always have been, just admit it Regional theme parks are what they are, places with fun rides that don't have much of a theme. Cedar Fair and Six Flags are both similar, each park has its own small niche and some parks are better than others. Yeah, Dorney and Cedar Point might look like concrete jungles, but they beat the pants off of SFKK or SFA's coaster collection. Valleyfair might have some crappy rides, but its sure as hell a nice looking park.

Bob-o, you're a pessimist and always have been. I won't try and change you, I think people just need to take your posts with a grain of salt instead of purely mocking them. You and Galvan have always been on opposite sides of the spectrum, while the truth is usually buried somewhere in the middle.

As for the bankruptcy, certain investors certainly got screwed, because they wanted their own plan and Six Flags essentially said screw you (kinda like Kentucky). On the other had, its a business world, and people play hardball in business, so I can't really blame Six Flags.

As for the debt, 1 Billion is still a lot considering the new management really hasn't done much to actually reduce debt, all they have managed is to stay about even each year. This plan really only prolongs the inevitable unless Six Flags can actually start making some money, which means not giving away the gate. Something they have always done and they need to stop.

[monsterfan99]

This plan really only prolongs the inevitable unless Six Flags can actually start making some money, which means not giving away the gate. Something they have always done and they need to stop.

This is what bothers me. What does the chain do once new streams of ad revenues dry up? With season passes (with parking) costing as low as $50 combine for some people (mine was $55) you can not stay in business.

[Bob O]

Some will never admit that they are a SF fanboy and will buy what ever PR they are told(and never admit it)!!!

And while I have really enjoyed Cedar Point on my visits to that park i am not a fanboy of the chain, but would consider myself a fanboy of the Disney Parks and other well run parks like Holiday World/Dollywood/Silver Dollar City/BGW/BGT etc.
As for being a pessimist of the SF chain of parks I am and think too many here think that this is some great big deal, when it is a short term solution to a long term problem that the company has never shown a ability to handle.

And I would agree with woodland that it is inevitable that the park will face bankruptcy again if they dont stop giving away the gate, which is unlikely if they want people to come to the park in any great numbers because people wont find value of paying 54.99 to get thru the gate plus 15 to park. It doesnt bode well for a company when they value the cost of season parking pass to be worth $70, but only $64 to enter the park. So while they will sell alot of cheap season pass's which will make lines unbearable once summer comes, that will do little to make money as people buy little merchandise in the park and leave to go eat by there cars or the nearby rests.

And to end on a positive note, I do think SFGAm did a excellant job re-doing the County Fair food court, and I like the addition of Mrs Fields cookies, and I think the employee's at the park were extremely friendly and did a very good job!! The park has improved the training of there employee's!!