Six Flags Flying At Half-Staff

Back in March I noted that the parent company of Six Flags was on the verge of bankruptcy. Today, it's official as the company filed for Chapter 11 in Delaware.

Six Flags Inc., the owner of 20 theme parks, sought bankruptcy protection 3 1/2 years after Washington Redskins owner Daniel Snyder become chairman and hired new managers in an attempt to return it to profitability.

The New York-based company, which said in a statement that it had debt of $2.4 billion, filed a Chapter 11 petition today in U.S. Bankruptcy Court in Delaware.

Snyder began a shakeup of Six Flags in late 2005 after winning three seats on the board. The 48-year-old company hasn’t posted an annual profit since 1998 and posted losses of $558.8 million in the two years after Snyder became chairman.

Six Flags shares have fallen 86 percent in the past 12 months as investors have grown skeptical about the company’s ability to refinance preferred income equity redeemable shares, or PIERS, before their August redemption date.

The company is seeking court approval of a prearranged reorganization plan that will cut its debt by about $1.8 billion and eliminate more than $300 million worth of preferred stock obligations, Six Flags said in a statement.

What will become of the 20 theme parks around the country? Fair number of jobs there too. Times are hard.

They'll get worse before they get better.

[UPDATE] For now anyway, all 20 parks will remain open, CNN reports. I can't imagine that will remain the status quo for long.