Loaded Couch Potatoes

Six Flags Inc, the world’s largest regional theme park company, announced they filed for chapter 11 bankruptcy protection over the weekend.  Many industry analysists have been expecting this move.  They also announced they would not be selling any parks or cutting any of their workforce.

Mark Sharpiro, the CEO of Six Flags, has stated many times that this would be a difficult year with the shape of the economy and their debt taken on by previous management.  The company had a looming $300 million payment due in August.  Months ago the CEO announced to the company employees that the creditor would not budge on the due date for the $300 million payment, nor would they even meet in person to discuss it.

The previous management team of the company took on the massive debt of $2.4 billion from 1998 – 2005 buying up smaller parks and building new coasters.  Later in 2005 Washington Redskins football team owner Dan Snyder took controlling position of the company as the chairman and installed a new management team, including current CEO Mark Shapiro.  Experts expect the current management team will remain in place.

Today the stock opened at 11 cents a share, down over 50% from the closing price on Friday.  Looks like I won’t be selling my shares for a long time.