Six Flags board decides not to pay Nov. 15 dividend on Piers

By Caroline Salls

Pittsburgh, Oct. 20 - Six Flags, Inc.'s board of directors has decided not to declare and pay a quarterly dividend on its outstanding Preferred Income Equity Redeemable Securities (Piers) for the quarter ending Nov. 15, according to a company news release.

Under the terms of the Piers, the company said dividends are not required to be paid currently, and any unpaid dividends accumulate without interest.

Six Flags said the board's decision not to declare and pay the Nov. 15 dividend does not violate any covenants under any of its debt agreements.

According to the release, the company's deficit in stockholders' equity, the overall state of the credit markets and the fact that unpaid dividends accumulate on an interest-free basis were factors that the board considered in reaching its decision not to declare and pay the quarterly dividend.

The company said the board will continue to evaluate all facts and circumstances, including relevant legal restrictions, before any future Piers payments.

Six Flags said each Piers represents one one-hundredth of a share of the company's 7.25% convertible preferred stock.

Six Flags is a regional theme park company based in New York.

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