Bankruptcy for Six Flags

The owner of Magic Mountain in Valencia, along with a few dozen other theme parks, filed for Chapter 11 protection this morning in Delaware. Typical problems - too much debt ($2.4 billion) and too little interest among the creditors to refinance. All the parks will continue to operate during the bankruptcy. From DealBook:

The company is hoping to make its ride through bankruptcy a short one. In a statement, Six Flags said that it is seeking court approval for a pre-negotiated restructuring plan, one that has the unanimous approval of its lenders. That proposal would eliminate $1.8 billion in debt and slice off the $300 million in preferred stock payments.

The filing comes at the start of what is expected to be a tough summer for all theme parks as consumers keep watching their pennies. (In Magic Mountain's case, having your parent company in bankruptcy isn't likely to help.) From the LAT:

David Mandt, a spokesman for the International Assn. of Amusement Parks and Attractions, a trade group that represents about 4,000 parks, zoos and aquariums, hopes the bargain deals will keep attendance numbers up. "These are unprecedented times, but we are optimistic," he said.

By the way, one of Six Flags's primary advisers is the L.A. investment bank Houlihan Lokey Howard & Zukin.