Six Flags' bankruptcy filing on Saturday did little to deter crowds at its Largo amusement park this weekend, company officials said.
The New York company, controlled by Washington Redskins owner Daniel M. Snyder of Potomac, filed for Chapter 11 protection in federal bankruptcy court in Delaware, seeking expedited approval of its pre-negotiated reorganization plan.
The plan is backed unanimously by the company's lenders' Steering Committee and by its Administrative Agent for the company's $1.1 billion senior secured credit facility, according to Six Flags information.
Six Flags operates 20 parks in the U.S., Mexico and Canada.
"There have been no issues at all among guests, with regards to the announcement," said John Winkler, president of the Largo park, the chain's only park in Maryland. "Schools are finally getting out, so we're hoping for our summer crowds."
Winkler said Six Flags America has worked with a larger budget this year than in the past, including funding for its 104 full-time and 2,000 seasonal workers. He said the work force could increase as the park "ramps up for [its] summer numbers."
In a letter to all Six Flags employees, CEO Mark Shapiro assured them that they will continue to be paid in full and on time and receive their benefits.
"No reductions in work force will arise out of this filing," Shapiro wrote. "It is critical that you — and our guests, suppliers, families, and friends — know that every park is open and operating today and will continue with normal operations this summer and for years to come."
Six Flags faces a $300 million debt that comes due in August. The debt is the result of a $2.4 billion debt the company has worked to reduce since Snyder's team took over in 2006, Shapiro wrote.
The company had revenues $1.02 billion and a net loss of $113.0 million last year, according to a filing with the U.S. Securities and Exchange Commission. Its bankruptcy filing lists its assets at $3.03 billion and its debts at $2.37 billion. Its largest creditor is HSBC Bank, which is owed $400 million.
Its largest shareholder is Cascade Investment, with 11.1 percent, followed by Citigroup, with 9.1 percent. Snyder owns 5.9 percent of Six Flags stock, according to its bankruptcy filing.
Shapiro said recently that the increased staff presence at Six Flags America has boosted the park's ratio of compliments to complaints.
"You have to have every ride open; you have to look alive," Winkler said.
He said Six Flags America has been continuously speaking with its staff to ensure they are aware of the situation and have no questions.
"This doesn't affect our ability to conduct business. … It's a parent company issue," Winkler said, emphasizing the Largo park has no plans to alter its strategy this season.
Six Flags America hopes to draw in the crowds with its Starburst Summer Concert Series, which are proving to be popular among "tweens," Shapiro said.
"Time will tell how the season turns out. There's so many factors now impacting families looking at entertainment options," he said. "But our guests clearly understand that the debt-restructuring has nothing to do with the local park."