Cedar Fair today disclosed that CEO Dick Kinzel sold 167,900 of his limited partner units of Cedar Fair in order to meet a margin loan call. Additional units are pledged as security and future margin calls are possible.
"I am very disappointed to have been required to sell these units from my more than 1.3 million units of direct ownership in Cedar Fair," Kinzel said in a company statement. "This sale does not reflect my view of the company's financial position or its future performance potential.
"The margin debt is a result of an April 2008 option exercise and the related payment of federal and state income taxes," he added. "That option exercise, where I purchased and held the units, reflects my complete confidence in the value of the Company's strategy and assets over the long run. My confidence in Cedar Fair remains unchanged."