Is January 15 Insolvency Day for Six Flags?

[GADVwow]

...US amusement park chain Six Flags’ first coupon on its newly issued USD 400m opco 12.25% notes due 2016 is also due 15 January. It’s unclear whether the troubled theme park operator will make the USD 24.5m payment later this week, said the sellside analyst. Six Flags must also make a 1 February USD 5.8m payment on its USD 131.08m holdco 8.875% senior unsecured notes due 2010. The 8.875%s traded at 23 yesterday, according to MarketAxess.

Like Charter, Six Flags is contemplating a workout of some sort. Management has hired restructuring specialist firm Houlihan Lokey to help address its wobbly capital structure, as previously reported.

Shirking either or both of the payments would “change the amicable tone of the situation [but] would also create sense of urgency” regarding a balance sheet restructuring, said a buyside source.

The company had only USD 34.5m in cash as of 30 September 2008, but drew USD 244.32m of its USD 250m revolver in October to ensure sufficient liquidity for its off-season, as reported. Company officials previously declined to comment on the upcoming coupon payments and did not return calls for comment on this article....

http://www.ft.com/cms/s/2/c3803568-e28e-11dd-b1dd-0000779fd2ac.html