Amusement Park Giant Six Flags Declares Bankruptcy

Amusement park company Six Flags filed for Chapter 11 bankruptcy protection on Saturday, indicating that it needs to reorganize and get rid of $1.8 billion in debt. CEO Mark Shipiro says that the move will not affect the operation of the company's 20 theme parks in 11 states, Mexico, and Canada.

2008 was actually a great year for Six Flags, seeing 25 million visitors and posting record revenues. However, company executives are attempting to lighten a $2.4 billion debt load that they say is unsustainable.

he amusement park company Six Flags sought Chapter 11 bankruptcy protection Saturday, saying it needs to reorganize and shed $1.8 billion of debt.

Six Flags' bankruptcy filing in Delaware on Saturday came after an earlier plan to negotiate an out-of-court deal with creditors failed. Shares of Six Flags have traded below $1 since September 2008, and closed at just 26 cents on Friday.

In a letter to park staff, Shapiro said:

"I assure you that all planned improvements are on schedule at our parks and that our ambitious plans for 2010 and our 50th anniversary celebration in 2011 remain intact."