At first, the amusement park company had an agreement with loaners but they could not reach their payment goal in time. This is why they had to file for chapter 11 bankruptcy. But, bankruptcy isn't the only problem they face. They also owe stockholders $300 million. They are saying that the shares will be worth nothing because the company will be paying off other debts first. The company will be focused on getting out of debt to keep the company running and the shares will not be the number 1 priority.
Don't start getting upset because the company is doing everything to get the money back. They are trying to sell land they dont use to pay off some debt. Six flags is waiting for the court to approve a "pre-negotiation restruction plan". They claim it would get rid of $1.8 billion of the debt. They are also making plans for the future. They state they are just waiting for it to be over and have many plans to make it a better place and keep people entertained.
While they are bankrupt, they are scared the attendance will decline. The people will get impatient waiting in lines when the amusment park is bankrupt. I disagree with them completely. I believe that people will want to go more now because the park may close from bankruptcy. I think the only reason people will not want to go is because they don't have the money to spend. This might become a huge issue/ is a big issue for the company. With the recession, more people are finding cheaper ways to be entertained. Since the park is so expensive, less and less people will go. The economy needs to get better in order for the company to get better.
I have learned that the amusement park business is a downhill business. They have to pay so much for insurance and repairs. The tickets are already lots of money and if they raise the prices more people will stop attending. I think sooner or later this will happen again and again.
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