According to an article in the Dallas Morning News, Six Flags filed Chapter 11 bankruptcy in an effort to shed $1.8 billion in debt which is financially crippling the company. Six Flags which operates 23 theme parks in North America, including Six Flags Over Texas, Hurricane Harbor in Arlington and Six Flags Fiesta Texas in San Antonio, is struggling with massive debts that threaten to financially overwhelm the company despite experiencing a 5 percent increase in revenue in 2008. The long-term debt was incurred by the previous owners of Six Flags; but is the new owners who are literally “paying the piper.” Six Flags hopes to restructure that debt in Chapter 11 bankruptcy getting a chance to at a fresh financial start
Six Flags’ situation is very similar to individual debtors filing bankruptcy. Many debtors have income from a job or retirement and they may have experienced increases in income over the years; but the amount of “old” debt they have is making it impossible to sustain the essentials in life and to attain financial health. This may be a debtor earning $60,000 a year; but who has $70,000 in annual debt related expenses. Although on the surface, the debtor’s salary appears sufficient, it is not enough to service his/her massive debt. This type of debtor may benefit from bankruptcy just like Six Flags and other companies who are getting control of their debts.
To learn more about bankruptcy’s benefits contact a Dallas- Fort Worth bankruptcy attorney today.