Six Flags Restructuring? Delisted On NYSE as of April 20

[SFaddiction84]

Six Flags pushes back interest payment
The Business Journal of Milwaukee

Six Flags Inc. will delay a $7 million semi-annual interest payment on some senior notes as it investigates a restructuring.

Six Flags, which operates Six Flags Great America & Hurricane Harbor in Gurnee, Ill., said it will take advantage of a 30-day grace period for making the interest payment on its 9.75 percent Senior Notes due 2013.

"We clearly have ample cash and liquidity to fund the April interest payment, but will for the time being put it on hold while we assess and evaluate the restructuring options before us," said Six Flags President and CEO Mark Shapiro in a news release. "We have this window for a reason and we've decided to utilize it. This decision has no impact on payments to vendors, with which we remain current, or our park operations."

Six Flags (NYSE: SIX) will be delisted from the New York Stock Exchange on April 20. The company has hired financial and legal advisors to help it restructure its outstanding debt and preferred securities, which will lead to the issuance of a significant number of shares of common stock to the holders of the company's restructured securities. Six Flags said it believes the restructuring will let it qualify for listing on a national securities exchange.

http://www.bizjournals.com/milwaukee/stories/2009/04/13/daily29.html

[Jackluver18]

Is that a good thing or a bad thing?

[Coaster Justin]

I personally think It'll be a good thing. There are alot of Companies that aren't on the NYSE that Do Well. I think the NYSE is what got Six Flags in Trouble in the First Place. The NYSE is basically 1 Big Credit Card in my opinion.

[Jackluver18]

Sorry if that's a stupid question, I just didn't know

[Ilovthevu']

That's not what got Six Flags in trouble in the first place. Is it good getting delisted? It sort of is because than they get the investors off of their back. They are getting delisted because their stock is so bad, and their stock is so bad because of how much debt they are in, and Shapiro has hardly dented the debt.

[bobbinbop20]

^ well at least hes not making it worse then it already is, hes doing some good,but i guess not making the payment isnt good...

[FParker185]

Not making that payment is the first step to chapter 11. Why pay the money when it can be "restructured" away

[Ilovthevu']

If they have that money, just give it up. The problem is with August, and what's the point of delaying this?

[Coaster Justin]

I think even though they have the money, they're putting it in the bank to collect some interest off of it. That's Just what I would do.

[FParker185]

They are not paying it cause they don't have to. They have 30 days to either pay it, or file for bankruptcy and not have to pay it at all, or pay alot less than they owe. Would you pay out a large sum of money when you know you'll be filing bankruptcy in the very near future?

[Ilovthevu']

When people see bankruptcy, they automatically assume places are going bye-bye. When they see Six Flags is filing for bankruptcy this early, it might dampen their main part of the season. Why not file bankruptcy in August in which you got all that money before you do it (Tons of people have come in already in June, July, beginning of August)? I think more people are going to think Six Flags is not open because of bankruptcy basically is my point. Till this day, some people believe that Magic Mountain is closed because of that sale that never happened.

[FParker185]

an excerpt from an article:

Empty creditors seem to be appearing elsewhere. Take the case of Six Flags, the amusement park operator that is strugging with a huge debt load. Six Flags' management is furiously trying to avoid a Chapter 11 filing. Last week, the company announced an offer to swap about $600 million in debt for about 60 percent of the company's stock. Should bondholders not take up the offer and insist on receiving interest payments, Six Flags said it might have to file for Chapter 11. But as the Washington Post noted in this good article on Six Flags' difficulties, not all bondholders are going along. "Six Flags executives have not publicly identified the holdout, but people with knowledge of the negotiations say that a Fidelity Investments fund owning more than $100 million in bonds due in 2010 has yet to come to the bargaining table." It's unclear why Fidelity isn't coming to the table. It could be because they believe the company might be able to make the interest payments. Or it could be because Fidelity, in this instance, is an empty creditor. The Post notes that one possible explanation for Fidelity's behavior is that "the bondholder has a credit-default swap—essentially an insurance policy—that would pay it a higher sum than an out-of-court agreement." Since credit-default swaps are triggered by formal bankruptcy filings—and not necessarily by out-of-court restructuring deals—bondholders who purchased insurance may feel they have more to gain from a traumatic filing than from an out-of-court settlement. The Financial Times reported last week (subscription required) that the logic of empty creditors may similarly have been a reason why General Growth Properties and paper company Abitibi-Bowater both ended up filing (here and here) for Chapter 11 on April 16.

You can't blame empty creditors for wanting to see companies in which they hold debt go bankrupt. They had the foresight to purchase insurance on their investments. But for all the other people tethered to troubled companies—managers, employees, suppliers, and customers—the presence of empty creditors may make the process of restructuring debt more lengthy and expensive.

[onyxhotel08]

New Orleans might sue the company...yup they are still upset the chain refuses to reopen the park last open 4 years ago. http://www.nola.com/news/index.ssf/2009 ... o_dis.html