Six Flags seeks debt-for-equity swap

NEW YORK, April 18 (UPI) -- U.S. theme park operator Six Flags Inc. is asking its debtholders to exchange their $588 million in notes for stock.

Six Flags, based in New York, is struggling to avoid bankruptcy and Friday appealed to holders of three series of senior notes to exchange the debt for equity in an offer that will stay open until June 25, the Washington Business Journal reported.

The amusement park company, which is controlled by Washington Redskins football team owner Dan Snyder, announced this week that it would defer a $7 million interest payment on one series of debt notes, taking advantage of a 30-day grace period for that payment, the publication said.

The company also said it would tap a 30-day grace period for an interest payment due on another set of notes scheduled for June 1. Six Flags has said it may file for bankruptcy should its debt restructuring efforts prove unsuccessful.