Six Flag seeks Chapter 11, parks stay open

WILMINGTON, Del., June 13 (UPI) -- The U.S. amusement park chain Six Flags, Inc filed for Chapter 11 bankruptcy Saturday as it wrested with more than $2 billion in debt and slumping attendance.

Mark Shapiro, president and CEO, said in a letter to employees posted on the company Web site that the bankruptcy filing Delaware had been pre-arranged and was due in large part to debt inherited from the previous ownership.

"Even if you have a record year and make approximately $275 million as we did last year, when you have to pay out approximately $175 million in interest expense on your debt and $100MM in park improvements to maintain and keep up with the business, that's a balancing act you just can't risk year in and year out," Shapiro wrote.

Shapiro said the Six Flags brand remained solid and that employees and vendors would continue to be paid.

Six Flags operates 20 parks in the United States and is entering its critical summer season facing a recession that will likely hurt attendance.

The Wall Street Journal said Six Flags was taken over by Daniel Snyder, the owner of the Washington Redskins, in 2005. Another sizable stakeholder is Bill Gates' investment firm Cascade Investment.