Time Warner Cash Infusion Aids Six Flags : Theme parks: The recapitalization assures that Magic Mountain will not be sold.

By PATRICE APODACA

Dec. 31, 1991 12 AM PT

TIMES STAFF WRITER

Last week’s announcement by media giant Time Warner Inc. that it had completed its recapitalization of Six Flags Corp. and taken control of the theme park operator means that Six Flags Magic Mountain in Valencia will not be sold.

Six Flags had previously said that without alternative financing or a capital infusion, it might have had to sell some of its theme parks or file for bankruptcy court protection. But on Monday, Robert Pittman, chief executive of Time Warner Enterprises, said Magic Mountain “definitely won’t be sold.”

Why? Time Warner’s capital infusion gives Six Flags some breathing room.

Last week Time Warner put an additional $30.5 million into Six Flags, and has now invested $50 million in the company since May, 1990. Time Warner now owns 50% of Six Flags.

Also, in related transactions last week, two New York investment funds controlled by the Blackstone Group and Wertheim Schroder invested $125 million in Six Flags. As a result of the investments, Six Flags has retired nearly all of its high-interest debt, Time Warner said in a statement.

Previously, in filings with the Securities and Exchange Commission, Arlington, Tex.-based Six Flags had warned that it might not be able to keep paying for the massive debt that it took on in a $610-million leveraged buyout by Wesray Capital Corp.

Joseph R. Schillaci, president of Magic Mountain, called the Time Warner acquisition “great news, specifically because the financial issue is put to bed.” He hopes to work more closely with Time Warner to develop theme park rides and product tie-ins based on Warner Bros. cartoon and movie characters.

Pittman has also assumed the position of chief executive of Six Flags’ newly created parent company, SFCA Acquisition Corp. Larry Cochran will stay as president and chief executive of Six Flags.

Also last week, Amusement Business Magazine, a trade publication, reported that attendance at Magic Mountain remained flat in 1991. Last year the park had a record 3.2 million visitors. Theme parks overall have suffered this year because of the recession and the Persian Gulf War, industry observers say.

Six Flags also recently announced plans to open a new roller coaster in the spring, a $4-million ride called Flashback.

It will be the park’s eighth roller coaster.