According to an article in the Star-Telegram, Six Flags Inc. announced that it may file for Chapter 11 bankruptcy because it cannot meet an imminent financial obligation as revenue has slowed significantly. According to the company’s annual report, the company does expect to have enough money to repay more than $300 million in preferred-income redeemable shares which mature August 15, 2009. If the company is unable to reach an out-of-court settlement with their creditors before August they will most likely file for Chapter 11 bankruptcy.
The downturn in the economy has hit all industries; but many entertainment companies are getting hit hard as consumers pull back on spending. The possible bankruptcy of Six Flags Inc. is just another blow to this already battered industry. A Six Flags bankruptcy could have far reaching effects in Texas causing job losses at the theme park and other businesses that depend on it for their survival.