A recent posting at the SEC shows that Six Flags might not be able to raise enough revenue to continue through this year. They have some huge bills (hundreds of millions) that come due in August, and they have not shown much postitive cash flow in the past years.

We have had a history of net losses. Our net losses are principally attributable to insufficient revenue to cover our relatively high percentage of fixed costs, including the interest costs on our debt and our depreciation expense. We also have an accumulated stockholders’ deficit of $443.8 million at December 31, 2008. Additionally, our Preferred Income Equity Redeemable Shares (“PIERS”) are required to be redeemed in August 2009, at which time we are required to redeem all of the PIERS for cash at 100% of the liquidation preference ($287.5 million), plus accrued and unpaid dividends ($31.3 million assuming dividends are accrued and not paid through the mandatory redemption date). Given the current negative conditions in the economy generally and the credit markets in particular, there is substantial uncertainty that we will be able to effect a refinancing of our debt on or prior to maturity or the PIERS prior to their mandatory redemption date on August 15, 2009.

The company is asking for some restructing of debt, and that can only happen when you declare bankrupty. So the question is, does Six Flags stay around or is there a sell off in the making. No matter what your views on the company, I don’t think anyone wants to see them declare bankrupty. There are plenty of parks for sale in the US, having more would not be a good thing.

It is not time to have this company go under. We have been seeing signs of this for years and have wondered how they could possibly continue, but they have. Bankrupty doesn’t always mean that the company is done either, there is a chance for them to reorganize and come out of it. I think the general feeing is that once you declare bankrupty you are kind of screwed. Lets hope that Six Flags can pull out of this so that we don’t lose any more parks or coasters.