|
CNBC'S MOST SHARED
- Madoff Sentence Cheered, Seen as 'Strong' Message
- Tips for Surviving Prison: Bernie Madoff Edition
- Sports Poker Event Trying To Buck Recession
- Paper Avalanche Buries Plan to Stem Foreclosures
- Kneale: The Great Recession is Over!
- Five States That Will Lead US Out of Recession
- The Generation Gap Grows Wider
- Billy Mays — He Left the World Knowing He Sold It
- Japan Job Woes Deepen But Consumption Points Up
- Madoff Sentence Cheered, Seen as 'Strong' Message
- Chinalco Seen Taking Up Rio Issue, Rights in Demand
- J&J Unit Wins $1.67 Billion Verdict Against Abbott Labs
- GM Cuts Ties with Toyota in US Joint-Venture
- Will Commodities Stay Hot All Summer?
- Slideshow: A Rogues Gallery of Financial Crime
- No Recovery Until 'Well into 2010’: Ross
- Paulson to Testify on BofA/Merrill Lynch in July
- Art Cashin: Here's When Rallies Die
- Top Strategists' Plays for the Second Half
- The "New" Michael Jackson Fortune
- Hollywood Cashing In On Financial Crisis
- Warren Buffett Wearing "Belt and Suspenders" As Tide Went Out - KBW Analyst
- Winners & Losers Since March 9th Low
- Sports Poker Event Trying To Buck Recession
- How to Play a Weaker U.S. Dollar
- A Different Sort Of Statement To The Madoffs
Text Size 
Six Flags will not sell assets or reduce its workforce as a result of its Chapter 11 bankruptcy filing this weekend, the theme park operator's chief executive told CNBC Monday.
"This isn't a liquidation," said CEO Mark Shapiro. "This is about the past. This is about debt that's been around for just too long."
Six Flags, [SIX
Loading...
()
] which operates or owns 20 parks in North America, filed for Chapter 11 bankruptcy protection in the early hours of Saturday morning. The company was saddled with a $2.4 billion debt load and faced a looming cash $300 million payment to preferred stock holders in August.
The company tried to convince lenders to swap debt for equity in the last two months, but abandoned the measure after the measure drew little interest.
Common shareholders, as well as most bondholders, will likely be "heavily diluted" due to the Chapter 11 filing, Shapiro said in the interview.
In its bankruptcy filing, the New York-based company said its restructuring plan will result in the deleveraging of its balance sheet by about $1.8 billion. The plan also calls for the elimination of more than $300 million in preferred stock obligations.
The filing will likely wipe out the 6 percent stake held by Daniel Snyder, owner of the Washington Redskins football team who took control of the company in a proxy battle in 2005. Other equity stakeholders who will be affected include Bill Gates' fund Cascade Investment LLC, which has about an 11 percent stake in the company.
Still, Shapiro said Snyder will continue his duties as chairman of the board, a position he took on in December 2005.
The chief executive also said he did not expect the bankruptcy filing to hurt the company's summer revenue because the company has built a reputation for its safety standards.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes