Business as usual at Vallejo's Six Flags

March 13, 2009 12:43:24 PM PDT
Shares of Six Flags Inc. are lower Friday on growing speculation that the theme park operator may be forced to file for Chapter 11 bankruptcy protection after the company said it could not meet a looming financing obligation.

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It's "business as usual" at Six Flags Discovery Kingdom in Vallejo despite an Associated Press report that the company may be forced to file for Chapter 11 bankruptcy protection because it may not be able to cover a looming debt.

"It's a back of the house issue," said park spokesperson Nancy Chan. "The company is in active discussion with its lenders about restructuring the debt. But it will have no bearing on the guest experience or our operations at all." Chan said the park has hired more than 1000 season employees to prepare for the height of the season this summer. She said they plan to hire at least 600 more in the coming months.

Six Flags operates 20 parks around the country. In its annual report earlier this week, the company said Chapter 11 is possible if it cannot reach a deal to restructure its debt. The company needs to come up with $278.5 million cash to redeem its preferred income redeemable shares, or PIERS. They mature on August 15th.

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