WASHINGTON — Theme park operator Six Flags Inc. declared bankruptcy Saturday after failing to reach a deal with lenders on $2.4 billion in debt.
The bankruptcy likely wipes out the shares held by chairman Daniel Snyder, who owns the Washington Redskins, and others in the chain, whose 20 parks span North America and drew 25 million visitors last year.
In a statement on the company website, CEO Mark Shapiro said the theme parks will stay open and operating and employees will continue to be paid. Six Flags owns no parks in Colorado, having sold Elitch Gardens in 2007.
“This action to clean up the balance sheet paves the way for a full revival of the company,” Shapiro said. “We inherited an unsustainable $2.4 billion debt load.”
The company said it filed Chapter 11 with a prearranged reorganization plan to reduce its balance sheet by about $1.8 billion and eliminate more than $300 million in preferred stock obligations due this summer.
The bankruptcy for the 48-year-old firm follows what amounted to a wild ride over the past several years. Snyder took control of the company after a bitter proxy fight in 2005. He brought in the energetic Shapiro from ESPN to resurrect it.
Shapiro’s strategy was to remake Six Flags into a more wholesome, family-oriented experience, emphasizing safety, cleanliness and customer service while forging partnerships with major sponsors such as Sara Lee and Chase Card Services.
But its summer 2007 attendance was slammed.
