Six Flags looks into restructuring Piers ahead of August 2009 redemption

By Angela McDaniels

Tacoma, Wash., Oct. 2 - Six Flags, Inc. said it continues to discuss potential restructuring alternatives for its Preferred Income Equity Redeemable Securities with the holders of the Piers.

Restructuring alternatives include a refinancing, exchange or extension of the Piers, as well as the use of an uncommitted optional term loan, asset sale proceeds and New Orleans insurance claim proceeds.

The Piers have a mandatory redemption date of Aug. 15, 2009.

Each Piers represents 1/100th of a share of the company's 7.25% convertible preferred stock.

The company also announced that it is not in compliance with the continued listing standards of the New York Stock Exchange because the 30-day average closing price of its common stock was less than $1.00.

Under applicable NYSE rules, the company generally has six months to cure the deficiency, and Six Flags' common stock will remain listed on the NYSE in the interim, according to a company news release.

The company said that if the trading average does not sufficiently improve, it will consider all available alternatives including a reverse stock split.

Failure to be listed on the NYSE does not constitute a default under any of Six Flags' debt instruments, the release noted.

Six Flags is a regional theme park company based in New York.

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