Originally Posted By vbdad55 Six Flags shares drop in premarket trading as bankruptcy worries increase NEW YORK (AP) -- Shares of Six Flags Inc. fell in premarket trading Friday as worries grew that the theme park operator may have to file for Chapter 11 bankruptcy protection. Six Flags shares lost 2 cents, or 10.5 percent, to 17 cents in early trading. The stock has traded between 16 cents and $2.50 during the past 52 weeks. In its fourth-quarter earnings report on Tuesday, Six Flags said it does not expect to have enough cash to redeem its preferred income redeemable shares on their redemption date of Aug. 15. The shares, known as PIERS, must be redeemed for $287.5 million plus accrued and unpaid dividends, which may total up to $31.3 million. The company has skipped paying the dividends since May of last year. The company said the PIERS redemption is one hurdle it is hoping to overcome in pursuing a "comprehensive restructuring of its balance sheet." If the company fails to refinance or restructure the PIERS, it would constitute a default that would allow its lenders to demand payment for other obligations. In its annual report filed with the Securities and Exchange Commission on Wednesday, the company said it may be forced to file for Chapter 11 bankruptcy if it cannot negotiate an out-of-court restructuring agreement with its PIERS holders, common stockholder and creditors. "Such a court filing would likely occur prior to the maturity of the PIERS or well in advance of such date, if we were to conclude at such time that an out-of-court solution is not feasible or advantageous," Six Flags said in the filing.
Originally Posted By vbdad55 Six Flags shares drop in premarket trading as bankruptcy worries increase NEW YORK (AP) -- Shares of Six Flags Inc. fell in premarket trading Friday as worries grew that the theme park operator may have to file for Chapter 11 bankruptcy protection. Six Flags shares lost 2 cents, or 10.5 percent, to 17 cents in early trading. The stock has traded between 16 cents and $2.50 during the past 52 weeks. In its fourth-quarter earnings report on Tuesday, Six Flags said it does not expect to have enough cash to redeem its preferred income redeemable shares on their redemption date of Aug. 15. The shares, known as PIERS, must be redeemed for $287.5 million plus accrued and unpaid dividends, which may total up to $31.3 million. The company has skipped paying the dividends since May of last year. The company said the PIERS redemption is one hurdle it is hoping to overcome in pursuing a "comprehensive restructuring of its balance sheet." If the company fails to refinance or restructure the PIERS, it would constitute a default that would allow its lenders to demand payment for other obligations. In its annual report filed with the Securities and Exchange Commission on Wednesday, the company said it may be forced to file for Chapter 11 bankruptcy if it cannot negotiate an out-of-court restructuring agreement with its PIERS holders, common stockholder and creditors. "Such a court filing would likely occur prior to the maturity of the PIERS or well in advance of such date, if we were to conclude at such time that an out-of-court solution is not feasible or advantageous," Six Flags said in the filing.
Originally Posted By Jim in Merced CA This just in re: Chapter 11 for Six Flags... <NEW YORK, May 29 (Reuters) - Six Flags (SIXF.OB) extended its May 28 deadline for its note tender after the bids it received were "substantially below" the minimum level it had set, the North American theme park operator said on Friday. The new deadline for tender is June 12 at 5 p.m. EDT (2200 GMT). The company is targeting 95 percent acceptance of the offer, which translates to roughly $825 million. "Six Flags is extending the minimum tender condition in order to provide additional time for holders to consider tendering and provide its board of directors with ample time to consider the company's alternatives," the company said in a release. In mid-April, Six Flags offered to exchange certain notes for common shares as part of a restructuring plan that would cut debt and stave off a Chapter 11 filing. The offer expires June 25, but the minimum tender deadline was set earlier. The development is not unusual and is part and parcel of the negotiation process, said CreditSights analyst Christopher Snow. "It really pays for some bondholders to hold out to get a better litmus test to see how other react." Six Flags, which offers 800 rides at its 20 parks, has been burdened with a massive debt load and a looming cash payment in August. The company said it did not anticipate adjusting the deadline beyond the new deadline. If the minimum conditions are not met by June 12, the exchange would likely expire and Six Flags would cancel the meeting with holders of its Preferred Income Equity Redeemable Shares, or PIERS. The notes in question are the 8.875 senior notes due 2010, 9.75 notes due 2013, the 9.625 notes due 2014 and the 4.5 convertible senior notes due 2015.> <a href="http://www.reuters.com/article/LRTOYS/idUSN2918290220090529" target="_blank">http://www.reuters.com/article...20090529</a>
