page_title: Six Flags
section_title: Bankruptcy
hierarchical_section_title: Six Flags / History / Bankruptcy
caption_attribution_description: I snapped this photo of en:Six Flags Kentucky Kingdom.
context_page_description: Six Flags Entertainment Corporation, more commonly known as Six Flags or as Six Flags Theme Parks, is an American amusement park corporation, headquartered in Grand Prairie, Texas. It has properties in Canada, Mexico, and the mainland United States. Six Flags owns more theme parks and waterparks combined than any other amusement park company in the world, and has the seventh-highest attendance in the world. The company operates 26 properties throughout North America, including theme parks, amusement parks, water parks and a family entertainment center. In 2019, Six Flags properties hosted 32.8 million guests.
  Six Flags was founded in Texas on August 5, 1961 and derived its name from its first property, Six Flags Over Texas. The company maintains a corporate office in Midtown Manhattan, while its headquarters are in Grand Prairie, Texas. On June 13, 2009, the corporation filed for Chapter 11 bankruptcy protection due to crippling debt, which it successfully exited after corporate restructuring on May 3, 2010.
context_section_description: The company's cash flow had decreased by over $120 million annually during the Shapiro years. In October 2008, Six Flags was warned its stock value had fallen below the required minimums to remain listed on the New York Stock Exchange. With the financial crisis of 2007–2008 weighing both on consumer spending and the ability to access credit facilities, Six Flags was believed to be unable to make a payment to preferred stockholders due in August 2009. Management saw the business as a sound one, noting that attendance across the company's parks increased slightly in 2008 compared to 2007. Six Flags CEO Mark Shapiro said that the company's problem was the declining attendance and cash flow created by his new management initiatives. If not resolved, the company warned in its 2008 annual report that the situation might require a Chapter 11 bankruptcy filing, with Six Flags already retaining counsel should that occur. The company stated at the time that it expected business to continue as normal in the event of such a filing, although one analyst believed attendance at the company's parks would decrease by six percent, suggesting parents would be leery of letting their children ride a roller coaster operated by a bankrupt company. In April 2009, the New York Stock Exchange announced it would delist Six Flags' stock on April 20, a decision that the company did not intend to appeal. On June 1, 2009, Six Flags announced they would delay their $15 million debt payment further using a 30-day grace period. Less than two weeks later, on June 13, the firm filed for Chapter 11 bankruptcy protection, but issued a statement that the parks would continue to operate normally while the company restructured. On August 21, 2009, Six Flags' Chapter 11 restructuring plan was announced in which lenders would control 92% of the company in exchange for cancelling $1.13 billion in debt.
  One component of the restructuring was negotiating a new lease agreement with the Kentucky State Fair Board, which owned much of the land and attractions for Six Flags Kentucky Kingdom. Six Flags had asked to forgo rent payments for the remaining nine years of its current lease agreement in exchange for profit-sharing from the park's operations. When it appeared that the offer had been rejected, Six Flags announced in February 2010 that it would not re-open the park. However, the Kentucky State Fair Board stated at the time that they were still open to negotiating a revised lease agreement.
  On April 28, 2010, the company's bondholders reached an agreement on a reorganization plan. Junior note holders, including hedge funds Stark Investments and Pentwater Capital Management, assumed control of the company, while senior note holders were paid in cash. Despite objections from some parties who stood to gain nothing, the bankruptcy judge approved the plan on April 30, 2010. As part of the settlement, chairman of the board Dan Snyder was removed, while chief executive officer Mark Shapiro briefly remained in his post.
caption: Six Flags closed Kentucky Kingdom in 2010, after failing to negotiate a lease agreement for the park
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