There is a great article that was posted to the Dallas Morning News today regarding Six Flags (NYSE:SIX) current financial situation. They state all of the facts up to this point and provide a great summary of the issues, particularly the Fidelity Investments holdout problem.
The Fidelity Investments bond holder is looking at a payment of about $100 million due in 2010, and they might be waiting to see if the company will be able to pay it (they had over $200 million free cash flow last year). They also might stand to make more money if the company should go under through some type of insurance policy. 2010 is a much nicer deadline than August though. I think if Six Flags can continue their goal of paying off debts as they become due (like tomorrow, which I hope they pay), eventually they will be able to refinance some of the more long-term debt as creditors see that the company is becoming more able to pay its obligations.
Overall I’m happy with the optimism of the article instead of the recent onslaught of Six Flags haters. Six Flags 2009 is not the Six Flags of 2003. It is not just about thrill-seeking teenagers anymore. Six Flags is making the transition to cater to the whole family, people need to realize these things take time. The worst thing they can do is abandon the parks now. Within 5 years, Six Flags parks across the country will be the Six Flags parents remember from their childhood. It will be a place you can bring the whole family (including your teenagers) to enjoy an affordable, fun place to spend a day or two.
Check out the article @ Dallas Morning News.
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