At the time of the company's filing, Mark Shapiro, president and CEO of Six Flags, said, "The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets. As a result, we are cleaning up the past and positioning the Company for future growth."
Under Six Flags current restructuring plan stock would be transferred to senior lenders in exchange for debt. JP Morgan Chase & Co. led this plan. But St. Francis, WI-based Stark Investments is offering a different plan, putting the hedge fund and various creditors in a controlling position.
The company has said, according to reports, that it has the support of note holders who own more than $500 million of the $870 million in outstanding unsecured notes. With this plan, these note holders will take control of 81% of the company's stocks.
The case is in the US Bankruptcy Court in the district of Delaware.
The company's earnings have fallen 10% in the first nine months of the year, when compared to 2008 figures. According to earning reports, Six Flags saw total revenue decrease $92.2 million to $811 million. Attendance was one of the biggest factors in the decline, with visits decreasing 21.2 million, a 5% drop from the same period in 2008.
Six Flags owns 20 regional theme parks through the US, Mexico and Canada.
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