NEW YORK - Six Flags Inc.
chief executive Mark Shapiro said one of the theme park owner's biggest debt holders refuses to meet with the company on restructuring.
"One of our principal debt holders who holds a significant amount of our senior notes due 2010 has thus far resisted a consensual restructuring," Shapiro said on a conference call.
Six Flags, whose 20 amusement parks include one in Agawam, Mass., is seeking to restructure before the mandatory Aug. 15 redemption of $287.5 million of Preferred Income Equity Redeemable Shares. Failure to refinance or restructure the PIERS before the redemption date would constitute a default under the company's credit facility, which would hasten due dates for long-term debt and have a "material adverse effect" on operations, Six Flags said.
Debt holders may receive equity in Six Flags by the end of the year, whether the company restructures out of court or files for prearranged bankruptcy, finance chief Jeffrey Speed said.