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Six Flags on the Brink of Bankruptcy: Downgrade to Five Flags Possible

March 14, 2009 at 1:21 PM | by Victor Ozols | 0 Comments

It's not just banks and homeowners that are in trouble these days. Even giant theme park operators are struggling as people curtail their leisure spending in the face of job losses and economic contractions. The latest victim is the Six Flags company, which is suffering under a staggering debt load of $2 billion and an environment in which more and more vacationers are slashing their budgets and staying close to home. The company's shares fell to a mere 16 cents on Friday, reflecting fears that the company would have to file for Chapter 11 bankruptcy protection. Six Flags is currently trying to restructure its debt, and is hoping that a three-year turnaround plan is able to bear fruit this season, but that remains to be seen as the U.S. remains mired in a recession.

I don't know how the Six Flags parks have been looking lately, but I do recall having lots of fun on a family trip to Six Flags over Georgia many moons ago. At the time, I had no idea that it was positioned as a discount alternative to Disney World, seven hours south. I just remember riding the Log Jamboree and the Great American Scream Machine so many times that my parents had to drag us to the car in the evening. It was a good place for kids.

Exactly what would happen to the company's 21 parks if the company goes under is unclear. Most of them would probably continue to operate in some form. It's tough news for shareholders, but the shakeout in the theme park business could have an upside, as whoever eventually takes control will probably want to do a wholesale reinvention of the mid-market theme park concept. Who knows what kind of family recreation will emerge at the end of this dark tunnel.

[Photo: accomblog]

Related Stories:
· Bankruptcy Possibility Looms for Six Flags [Associated Press]
· Six Flags [Official Site]
· Theme Park Coverage [Jaunted]

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