Six Flags Emerges From Chapter 11 With New Plan
Six Flags Entertainment has emerged from Chapter 11 bankruptcy protection, the amusement park operator announced Monday.
Six Flags, which owns 19 amusement parks in the U.S. and other countries, sought bankruptcy protection in June, burdened by high debt and declining park attendance by economically strapped consumers.
The company said the terms of its restructuring were confirmed by the court as of Friday. Bondholders had been fighting over control of Six Flags and told a bankruptcy judge last week that they agreed to a revised plan.
Six Flags said the plan cuts its debt and provides for payment in full of all trade creditors.
The restructuring cut the company's indebtedness and redeemable preferred stock to about $1 billion from approximately $2.7 billion at the end of last year. That figure excludes seasonal drawings under the company's revolving credit facility.
The company said because of this, its annual cash interest expense will be reduced to about $75 million.
The terms of the restructuring also include $725 million in new equity committed by the new shareholders.
Along with the equity investment, the restructuring was financed by about $1 billion of senior secured credit facilities, and a $120 million revolving credit facility. An affiliate of Time Warner also agreed to provide Six Flags with a $150 million multi-draw term loan facility.
The company said it will apply to list the new common stock on the New York Stock Exchange.
CEO Mark Shapiro said in a statement that the restructuring means the company's "opportunities are no longer limited by the legacy debt levels. With our new balance sheet, we now have the financial strength to generate long-term sustainable growth while continuing to enhance the reputation and reach of our brand."