Will Coronavirus Bankrupt Six Flags?
The coronavirus pandemic has hurt virtually every business in the United States, but amusement parks are especially vulnerable. Even if people wanted to go to a Six Flags (NYSE: SIX) park at a time like this, they wouldn't have the option. Government policies, as well as the company's decision to shutter its parks until May, ensure these assets won't generate much cash flow in the first half of 2020 if not longer.
To weather the storm, Six Flags has suspended its dividend and plans to significantly reduce capital expenditures this year. The company has also tapped its revolving credit line for an additional $131 million of liquidity. While these moves could help stave off some of the company's challenges, Six Flags is cutting it close. The company is no stranger to Chapter 11, and it finds itself in a similar financial condition as when it declared bankruptcy back in 2009.
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Source Fool.com
