The New York-based chain of parks, which runs Six Flags Discovery Kingdom in Vallejo, has been trying to renegotiate terms with lenders on hundreds of millions of dollars in debt.
Six Flags parks, including Discovery Kingdom., will continue to operate as usual under reorganization.
“The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets,” said Six Flags Chief Executive Mark Shapiro in a statement. “As a result, we are cleaning up the past and positioning the company for future growth.”
Snyder, who took control of the company in a boardroom battle more than three years ago, and the management team he appointed have been unable to return Six Flags to profitability. The company reported a $146.3 million first quarter loss and a sharp drop in revenue, despite a modest two percent increase in park attendance compared with a year earlier.
Six Flags is seeking bankruptcy court approval for a prearranged restructuring that would cut its debt by $1.8 billion and wipe out more than $300 million in preferred shareholder stock.
Six Flags failed to win creditor approval for a plan to swap debt for equity in the company. As a result of its bankruptcy filing, that exchange offer is no longer on the table, the company said.
Six Flags sold several properties last year to raise capital. It still operates 20 amusement parks in North America.
