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magic mountain in southern california is in deep doo doo too.
http://biz.yahoo.com/ap/090316/six_f...ructuring.html
AP
Six Flags CEO says debt holder won't talk
Monday March 16, 12:33 pm ET
Six Flags CEO says key debt holder refuses to negotiate out-of-court refinancing
NEW YORK (AP) -- A key holder of Six Flags Inc.'s debt is holding up negotiations to restructure the debt, the company's president and chief executive told investors Monday.
CEO Mark Shapiro did not name the debt holder, which he said holds a "significant amount" of the company's senior notes due in 2010. But he said it "has refused to meet" to renegotiate the debt.
"The auto companies have an easier time getting a meeting with the United Auto Workers than I do of getting a meeting with this particular portfolio fund manager," Shapiro said.
The New York-based company said in its annual report last week that a Chapter 11 filing is possible if it doesn't restructure its debt.
The company's first looming obligation is to holders of its preferred income redeemable shares, or PIERS, which will be due more than $300 million when the shares mature on Aug. 15.
Six Flags has said it does not expect to have enough cash to meet that obligation.
"We simply can't refinance our debt with the markets being what they are and we can't sell excess real estate in this environment and expect to get something even close to full value," Shapiro said.
Shapiro disclosed that the company has retained investment banking firm Houlihan Lokey financial advisers to help restructure the company's balance sheet to reduce debt and expects any out-of-court solution to include a "significant debt-for-equity exchange."
Shapiro said restructuring debt -- in court or outside -- will not affect the experience visitors have at its theme parks and the company plans a "heavy advertising and communications blitz" to get that message to the public.
Despite its debt burden, Shapiro said, Six Flags has achieved its operational objectives of making its parks more attractive to families, growing its sponsorship and licensing businesses, improving profit margins and generating positive free cash flow last year for the first time in the company's history.
Six Flags reported last week that its revenue fourth-quarter rose as attendance at its parks jumped 9 percent over the same period the year before. The company's losses, however, widened to $206.6 million, or $2.12 per share, in part because the company's income tax expense ed.
Even with consumers cutting their spending and labor and other operational expenses forecast to rise this year, Shapiro said he remains optimistic about the parks' performance this summer.
Six Flags shares, which have traded under $1 since September, were trading as low as their all-time low of 14 cents on Monday. The stock has traded between 14 cents and $2.50 during the past 52 weeks.
Six Flags over Georgia is located in Austell in suburban Atlanta.
magic mountain in southern california is in deep doo doo too.
Maybe they should lower their prices.
Season pass is the way to go.Maybe they should lower their prices.
I wouldn't go enough to get a season pass.
Why can't they let me in for $1?
We've got kids so we more than get our money's worth.I wouldn't go enough to get a season pass.
Why can't they let me in for $1?
$1? Retama Park!!
Can I rent your pass for a day?
I concur.Maybe they should lower their prices.
Lowering prices won't solve their problems. I think EricB stated as to why.
??
That depends on the underlying demand for their product.
If you slide a bit down the demand curve with your price point, you could sell more tickets and actually end up making MORE money by lowering the price.
Especially if you make the majority of your profits from concessions, which I would guess is likely.
Cause they need to take that out of that piece of town. It's in the ing desert, of course no one is going to go there.
They made some news here by announcing they'd start selling alcohol. We'll see if that gives them any sustainable revenue lift.
yeah, strictly lowering the price of admission does nothing.
what they should do is make better package deals, offering up more incentives with the price of admission.........
I wonder how much their taxes are. Just as an observer, there business outlay doesn't seem that bad. Taxes might be too high.
I don't understand how a place like Six Flags can lose money. You're talking $40 a person, per day? Unless EVERYONE is buying season passes, Six Flags establishments have to make millions of dollars per weekend per park with the number of people that go there.
Well, we don't spend hardly any money for concessions. We take our lunches and snacks. Noway I'm paying $3.50 for a bottle of water.
You can get bottled water @ Wal-Mart for $1.
Si, es verdad.You can get bottled water @ Wal-Mart for $1.
how much is a WalMart season pass?You can get bottled water @ Wal-Mart for $1.
I'm not talking SamsClub....
Now you see why they are losing money.
The million dollars worth of rides there need work.
The parts and supplies that are needed to keep them safe and running are astronomically high. Trust me, I know that just recently.
Because of their outrageous prices for concessions? When we go there are plenty of people tailgating during lunch time.
Because no one is buying food.
Thats how they make money, they make a profit on food, concessions and other items.
People stop buying that, business's net goes down.
I'm not saying its all your fault, but, when you complain about the "3.50" water your thinking that the company just makes a straight profit on said water.
You have to look at the cost of behind the water, the person selling the water, the workman's comp for the person selling the water, the cost of buying the water, and on and on and on. Hence why the water is 3.50.
Then they need to use as you would say "smart business" like Wal-Mart so they don't HAVE to charge $3.50 for a bottle of water. No?
Does HEB and Wal-Mart not have to pay for the cost of the water, the checker, benefits for said worker, well maybe not for Wal-Mart, and on and on?
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