In spring 1987, the park filed Chapter 11 because attendance was not sufficient to meet expenses and further development costs.

On Sunday, August 11, 1996, 4-year-old Emily Hunt was paralyzed from the chest down and her 57-year-old grandmother, Nancy Jones, was killed after a miniature train ride at the Old Indiana Fun Park derailed and overturned as it approached a curve.

The owners of the park admitted negligence, but denied knowing anything about the condition of the ride prior to the accident.

Prior to the project cancellation, the company purchased four roller coasters from the closed Opryland USA in Nashville, Tennessee (Chaos, Rock n' Roller Coaster, Screamin' Delta Demon and Wabash Cannonball), and transported them to the park, planning to reconstruct them there.

In July 2002, Six Flags sold the 330-acre (1.3 km2) property to Trevor Gray, former owner of Sunshine Holdings (containing a tanning bed company, ETS, and a lotion company, Australian Gold) and now of Sunshine Properties, which planned to turn it into a nature preserve.