Six Flags may file for bankruptcy

April 19, 1991|By Fort Worth Star-Telegram

ARLINGTON, Texas -- Six Flags Corp. says it may be forced to file for bankruptcy protection if it can't raise more cash, refinance its debt or amend its bank credit agreements to avoid default on its loans.

The theme park company, whose Arlington flagship is among the state's top tourist attractions, insisted that a Chapter 11 filing is not imminent.

"I don't think we're in deep financial trouble at this moment," said Larry Cochran, president and chief executive officer. "We're not even discussing bankruptcy. It's not an issue."

The company also said that, if it is forced to file for bankruptcy protection, its Arlington amusement park will not be involved. The local park, which attracted 2.8 million visitors last year, is owned by a separate partnership.

Six Flags, which operates seven theme parks nationwide, has been strapped by debt since May 1987 when management borrowed $610 million to buy the company from Bally Manufacturing.

Its debt includes more than $328 million that carry interest rates of 16 percent.

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