Six Flags may file for bankruptcy

Six Flags Inc., the owner of Magic Mountain in Valencia and 19 other theme parks may have to file for bankruptcy by the end of the summer. The company says it needs to restructure its debt by mid-August. Financial experts are uncertain about whether that's possible.

The main problem for Six Flags appears to be an August deadline to pay preferred stockholders. A Securities and Exchange Commissionfiling says that payout could cost the company more than $300 million.

Six Flags may file for Chapter 11 bankruptcy if the company can't renegotiate its debt. Chapter 11 allows a company to continue operation while it works out a plan to pay creditors.

If the company can't renegotiate its debt in time, it could be hit by a domino effect, causing a default on some of its other debts.