The Six Flags amusement park company has entered Chapter 11 bankruptcy protection to help eliminate some of it’s $2.4 billion in debt. The company has been in negotiations to try and restructure the debt, but efforts have been fruitless in today’s economic climate. Six Flags is looking to eliminate $1.8 billion of it’s debt so it can focus on running it’s parks which have seen an increase in visitor counts this year.
Kiddieland in Chicago to Close
June 12, 2009 — ColioneKiddieland in Chicago will close after the summer. The park operators lease the land from a trust and the lease runs out the end of this year. The park has announced it will close by the end of September.
Worlds of Fun & Valleyfair 4 Sale
April 19, 2009 — ColioneCedar Fair has put two more of it’s parks up for sale. It’s not necessarily the economy pressuring the company, but the previous purchase of Paramount Parks from CBS in 2006. Cedar Fair happily spent the money (which is now debt) to buy the Paramount Parks in the booming economy, but is now probably regretting it’s decision since the economy tanked.
Read the full press release from Cedar Fair
Six Flags in Trouble
March 26, 2009 — Colione
Six Flags may be in serious trouble. The company has a $300 million debt payment due this summer and has indicated it may not be able to make the payment unless it’s able to restructure it’s debt. Restructuring the debt may be troublesome since the financial markets are still in turmoil due to the recession. This could mean discounts for companies that actually have enough money to buy some of Six Flag’s parks.
Charter Communications files for Chapter 11
February 13, 2009 — Colione
Charter Communications is filing for chapter 11 bankruptcy protection and hopes to shed some $8 billion in debt. The company was found by Microsoft co-founder Paul Allen is a provider of cable TV, internet and broadband services. The company is expected to file for bankruptcy sometime before April.
With $800 million cash on hand, it has plenty of cash to continue operations as normal and will allow it to service its debt in the future.
Sirius XM flirting with bankruptcy
February 13, 2009 — Colione
Sirius XM, the lone satelite radio company in the US, is looking at bankruptcy protection as a way to force EchoStar to make a formal bid to take over the company.
Muzak files for bankruptcy
February 12, 2009 — ColioneEveryone uses a Muzak product knowing it or not. The company provides the music played while you’re on hold, in an elevator and in retail stores. The company announced it will file for bankruptcy protection after it missed a $105 million debt payment.
The company will continue to operate as it has a strong cash flow which has doubled in the last three years.
The company said the economy is not the cause for the bankruptcy, but from debt that is over a decade old.
Universal Orlando cuts 70
February 7, 2009 — ColioneNot surprising news really (see previous post), Universal Orlando is cutting 70 positions following a down turn in it’s park operations in Orlando.
Disney offers buyouts to 600 managers nationwide
February 7, 2009 — ColioneDisney has announced it is offering buyouts to 600 of it’s managers nationwide in an effort to cut costs at it’s various parks following the worldwide recession. If enough managers don’t accept the deal, layoffs will begin to thin the herd. I’m surprised it took this long for the theme park operator to make cuts even though this division out performed the rest of the company in it’s latest quarterly report.
Time Warner posts $16 Billion loss
February 4, 2009 — Colione
Time Warner, the parent company of AOL and CNN reported a $16 Billion dollar loss for the 4th quarter and expects 2009 to be flat. In the 4th quarter of 2007 the company reported just over $1 Billion in profit.
