http://finance.yahoo.com/news/Bankruptcy-possibility-looms-apf-1462857 3.html

Their shares are down 25% today. This is obviously a risk for La Ronde in general and the fireworks competition in particular. My guess is that if Six Flags do go bankrupt, Loto Quebec will take over La Ronde.

Paul.

Six Flags has experienced financial problems since a long time but now the issue looks more serious than never before. August 15 is not only the day of the 45-minute closing show:

Six Flags Inc., which owns Magic Mountain in Valencia and 19 other theme parks, said Wednesday that it might need to file for Bankruptcy Court protection if the company can't restructure its debt by mid-August.

An overhaul of Six Flags' debt is highly uncertain, the New York-based company said in a regulatory filing, causing auditor KPMG to have significant doubt about the theme park company's ability to continue as a going concern.

At the center of its financial worries is an Aug. 15 deadline to pay $287.5 million to owners of Six Flags' Preferred Income Equity Redeemable Shares, the company said in its annual report filed with the Securities and Exchange Commission. The payout to preferred stockholders could run more than $318 million when accrued and unpaid dividends are factored in, the filing said.

http://www.latimes.com/business/la-fi-sixflags12-2009mar12,0,5049688.s tory

There were an amusement park and a firework competition before Six Flags. There are with Six Flags. Let me cross my fingers that we will have both after Six Flags.

Fred

When Six Flags acquired La Ronde (or, rather, leased it from the City of Montreal) they were contractually obligated to keep the competition going for 10 years. I can't remember if 2009 is the 10th year or if it's 2010. I'm sure we'll have a competition this year - even if Six Flags enters Chapter 11, it doesn't mean that they will be out of business. Let's not forget that Air Canada was in the Canadian equivalent of Chapter 11 for more than a year and they were able to restructure and come out of it.

Fingers crossed.

Paul.

Yeah, I had touched on this issue briefly in the other thread several hours ago. I personally think this competition is in good hands for the time being as the contractual agreement stipulates to keep it going for the 10 years that was mentioned, regardless of any major issue (I think). Following this, however, only time will tell - this economic recession is a very serious problem that will, I believe, take much time to resolve. Let's hope Six Flags won't be affected by it much more than they already are.

Edit: If Loto-Quebec does indeed take the park over, then La Ronde and the competition itself should be alright for at least the next couple of years - if that's the case, chances are Loto-Quebec may continue in sponsoring the competition at the same time.

Heh, what appropriate news for Friday the 13th...

Trav.

I can't remember if 2009 is the 10th year or if it's 2010.

Six Flags acquired La Ronde in April 2001. That year was the first, so 2010 is scheduled to be the tenth season in the Six Flags' era.

Fred
P.S.: If I remember well, La Ronde was the 38th Six Flags' park in 2001. Now, Six Flags owns 20 parks.

Un article de plus sur ce sujet, paru en première page du cahier Affaires, dans La Presse ce matin:

http://lapresseaffaires.cyberpresse.ca/bourse/nouvelles/200903/14/01-8 36534-ca-ne-tourne-pas-rond-chez-six-flags.php

Fred