Avenue Capital Management owns some of Six Flags bonds and it went to bankruptcy court the other day to seek restrictions on how Six Flags spends its money. It seems some other bondholders were striking a deal or deals with Six Flags regarding a restructuring and Avenue Capital felt left out and wanted spending put on hold for the time being.
Yesterday, a judge ruled Six Flags can spend some money.
Today, Six Flags spent some money – on a press release announcing extention of a corporate alliance with Chrysler that allows the just-emerged bankrupt company to say it sports the Official Vehicles of Six Flags.
It’s one thing to spend a little money to get patrons through the gates at Six Flags theme parks, especially while we remain in a recession and people don’t want to spend money. But whatever was spent putting this press release together was a waste of time, for both companies. “Six Flags provides the ideal out-of-home solution for marketers.” Not sure what that means.
How about this one: “The partnership reminds consumers that Chrysler is still producing a full portfolio of reliable vehicles that capture the imagination and inspire loyalty.” That’s right, by Chrysler teaming up with an overleveraged theme park operator it pops endless images of creativity and innovation into one’s mind.
What’s next? Frontier Airlines becomes the official carrier of Six Flags? Eddie Bauer will create the official line of clothes for Six Flags theme parks?
Maybe Six Flags is just in denial that it is in Chapter 11 bankruptcy. In fact, it is. Look at its website under “Six Flags In The News.” It talks about a restructuring that has no impact on its parks, employees, functions etc. Not once does it mention the words “Chapter 11″ or “bankruptcy.”