City Paper is not for tourists
Dan Snyder‘s pre-defunct theme park chain, Six Flags, is zipping toward Chapter 11 quicker than a guy who’s taken an Evelyn Wood course.
On Wednesday, Six Flags stock (SIX) was going for $.98, its first-ever dive below a buck a share. Then it sunk to just 90 cents during Thursday’s trading.
$1 is a sort of Mendoza Line for SIX on Wall Street: Six Flags stock could be delisted from the New York Stock Exchange if it stays below or even just hangs around that tragic number for a while.
The company’s more than $2 billion in debt and doesn’t ever turn a profit.
Snyder’s going to release an earnings report for the second quarter of 2008 in a few weeks, and if those numbers aren’t good, well….let’s hurry and take another look at the Big Board while we still can!
When Snyder took over Six Flags through an ugly shareholders coup in 2005, he and his investment outfit, Red Zone LLC, a clique made up mostly of Redskins officials, claimed control of 10,921,300 shares of SIX.
As Snyder was anointing himself the Man in Charge, the stock went up to $11.93 per share, meaning the Red Zone investment was worth $130,291,109.
On Thursday, that wad was blown down to just $9,829,170.
Boy, is there a lotta red in Red Zebra: The Redskins Park pot is light by…. $120,461,939!
But, here’s the good news: There’s not much more to lose!
Keep the dial right here for all the breaking news in Snyder’s Six Flags soap opera.