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Six Flags Chinese Parks in Trouble

Gavin

Gavin

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I thought this would have been picked up earlier. Basically, Six Flags stock price went to s**t last week, dropping by close to 20%, partly because they've had a crap year, but mostly because their Chinese partner has failed to make the payments due, leaving the Chinese parks with a strong chance of being cancelled.

The company also disclosed in the 8-K that the development of the Six Flags-branded parks in China has faced “continued challenges,” and has not progressed as expected. The company said its partner in China, Riverside Investment, has faced “severe challenges” due to the macroeconomic environment and China’s declining real estate market.

“This has led Riverside to default on its payment obligations to the company and, as such, the Company has delivered formal notices of default under its agreements,” Six Flags stated in the filing. “While the Company continues to work with Riverside and each of Riverside’s governmental partners, the eventual outcome is unknown and could range from the continuation of one or more projects to the termination of all the Six Flags-branded projects in China.”
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Source here (similar stories floating around on other investment sites as well):

https://www.marketwatch.com/story/t...stock-is-having-its-worst-day-ever-2020-01-10



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Man, Six Flags really aren't lucky with their overseas parks, are they? La Ronde is doing OK, Six Flags Mexico is apparently well-liked, but of all of Six Flags' attempts to operate parks outside of the US seem to have failed. Six Flags Holland, Belgium, Germany, Spain, and France(?) were sold, the one in Dubai folded, the one in Saudi Arabia has all the hallmarks of an investment scam, and now the China parks are teetering too. It really makes me question the future of the company, especially as the headliner attractions in many of their US parks eventually become too old to operate and will need replacement.
 
As someone who follows the chinese parks pretty closely this isn't that much of a surprise. The plans were just so over the top with 3 plus parks at each of the 3 announced locations.

It looks like Hurricane Harbour near Hangzhou might get finished but the rest are all just mud patches at the moment.

I wonder how it affects the manafacturers of rides. The sale of 3 huge woodies by GCI to Dubai, China and Saudi would have been a big deal to them and if 2 of those 3 go down that got to be a big hit to expected profits and possibly cause some big issues.
 
Oh dear, how gutting! Six Flags haven't been having the biggest success rate in terms of foreign parks as of late, have they? That being said, there's a chance that they could still go ahead, so I'm going to stay positive until there's an official cancellation announcement. I was under the impression that these parks were due to open this year, so I'd imagine they're fairly far along in development.
roomraider said:
I wonder how it affects the manafacturers of rides. The sale of 3 huge woodies by GCI to Dubai, China and Saudi would have been a big deal to them and if 2 of those 3 go down that got to be a big hit to expected profits and possibly cause some big issues.
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I'd imagine that Six Flags would already have paid GCI design costs for these woodies, and surely GCI could try and sell the designs to other parks if Six Flags doesn't want them. I could also see at least one of the woodies going to an American Six Flags park, however, as wasn't Aquaman at SFOT allegedly a ride that Six Flags gained from the cancelled Dubai project?
 
Matt N said:
I’m not sure, because I could have sworn that I saw a very recent photo of Hurricane Harbour in Chongqing having started construction!
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It is still under construction as is the one near Hangzhou.

The big news is that Sunac (owner of the old Wanda parks) has seemingly taken over the development of the SF Park in Hangzhou. It also seems that the park will also keep the SF name as well.

What's not clear is if they are taking over the Chongqing and Nanjing Parks as well. The problem with the Chongqing Park is its only just down the road from Sunacs which is due to open soon.
 
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