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Finance: Six Flags seeks new loan terms

Posted at 5:27 AM EDT (0927 GMT)

Jul. 29th, 2006 -- Six Flags Inc. has reported that it was close to violating the terms of its $1.03 billion in loans and is now negotiating with its lenders to loosen these terms through the fourth quarter of 2007.

According to a U.S. Securities and Exchange Commission filing, Six Flags is looking to change the restrictions on the amount of debt it can have corresponding to the cash flow it generates and also reduce the minimum amount of cash flow it must generate in proportion to interest expense. The company has also asked for its lenders to waive some of the second-quarter financial requirements of its loans.

Six Flags Inc. is currently seeking buyers for six of its 30 amusement parks as it tries to reverse seven years of losses.

For more information visit Buffalo News.

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Comments
Wes Joined: Sep 2001 Posts: 10939 View Park/Ride Count	Well that doesn't sound very good. Only in business could you do this. You could never go to your bank and say, hey I want to pay you less each month and create more risk that we'll never pay you back. lol But at least they are realizing they have issues and are working to get it corrected instead of filing bankruptcy.
7/29/2006 6:11 AM
mmb088 Joined: Jun 2006 Posts: 160 View Park/Ride Count	Well the differance is that SF generates alot more revenue then the average consumer. Would be nice to have that kind of negotiating power with your bank though.
7/29/2006 12:32 PM
BGWfanatic Joined: Aug 2005 Posts: 1852 View Park/Ride Count	Hopefully this will help to turn the company around... probably not though.
7/29/2006 3:49 PM
pretzel-loop Joined: Jul 2003 Posts: 289 View Park/Ride Count	Actually, Wes, you could go to your bank ask them to renegotiate your terms. You can do it on your mortgage and even your credit cards. The difference is, if you renegotiate your credit card debt and ask them to forgive your interest, how is it going to effect your credit rating. Renegotiating SF debt will have an effect on their credit rating as well.
7/29/2006 9:14 PM
Komatz70 Joined: Oct 2005 Posts: 455 View Park/Ride Count	Six Flags might generate a more revenue than the average consumer, they also have amassed more debt and have more expenditures than joe average. They should really sell off more than six parks, more like half of them to try to get out from under the hole.
7/30/2006 12:01 AM

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