Six Flags Being Squeezed By Lenders

[GADVwow]

... Six Flags Inc., the second-biggest U.S. theme-park operator, is an example of how companies can be squeezed by lenders when they don't meet conditions set by banks.

`More Selective'

...Seven years of losses totaling $883.8 million and a decline of as many as 1.13 million theme-park visitors through June forced the New York-based company to tell bankers it couldn't meet requirements to generate four-times the amount of cash flow relative to the interest expense. It is seeking to cut the limit to 2.5 times.

Lenders of $1.03 billion in loans demanded Six Flags pay at least an additional half percentage point and a fee of a quarter percentage point to revise the terms, according to a July 21 SEC filing. The new terms, which haven't been completed, will raise the rate to at least 2.75 percentage points above Libor from 2.25 percentage points. ...

From:  http://www.bloomberg.com/apps/news?pid=206...qKuE&refer=home

[Ogolo]

With that title I thought it was going to be a story about bagels!