Theme Park Giant on Verge of Bankruptcy
Thursday, March 26th, 2009
The slumping economy seems to be hurting all industries, companies and people. Even theme parks do not seem to be immune from the financial problems facing the country and the world. The theme park giant Six Flags is on the verge of bankruptcy and is looking for ways to keep that from occurring.This is not the first time that Six Flags has been in trouble. The balance sheets for the company are loaded down with debt and there is no way for the day to day operations to support the costs of that debt. The company is in the process of restructuring so that it can remain out of Chapter 11.
It is hard to imagine that a company like Six Flags (which has 12 parks through out the United States) could build up over $900 million in debt, but that is just what has occurred. It is hoping to work out a proposal with several of the debt holders that will essential wipe out that debt completely.
Not all holders are on board with the potential out of court settlement. If the issue isn't resolved then the theme park giant could be forced into bankruptcy. The concern then turns to the day to day operations which are currently strong.
Experts say that bankruptcy for the auto industry would keep people from buying cars from those companies. That thinking then leads to the conclusion that there is no way that the parents of the main visitors to the park are going to allow their children to ride the roller coasters and thrill rides of a company that is bankrupt.
The troubles of Six Flags could cause trouble for families around the country. It the theme parks are pushed into bankruptcy or the troubles become bigger news then the could cause families to begin shifting their travel plans to theme parks and amusement parks with a little more stability.
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