Euro Disney gets 30 days to find funds

CujoSR · Post by **CujoSR** » Sat May 29, 2004 2:26 am

From: OrlandoSentinel.com

Euro Disney SCA, Europe's largest theme-park company, said Friday that creditors had granted it another month to negotiate new loans and avoid defaulting on $2.93 billion in debt.

Euro Disney, 39 percent owned by Walt Disney Co., has until June 8 to work out a plan with the U.S. company and key lenders. Other creditors must approve the unprofitable company's proposal by June 30, said Pieter Boterman, a spokesman for the company, which is based in Marne-la-Vallee outside Paris.

"It's a vicious circle, the banks are too far in to abandon it at this stage," said Bruno Catoire, a fund manager at Cholet-Dupont Gestion in Paris, which manages $1.83 billion and doesn't hold Euro Disney stock. "A refusal to renew the loans would cause the company to go bust."

Walt Disney Co.'s support for a refinancing plan would mark the second time the U.S. company will have come to the aid of the theme-park operator. In 1994, it waived management fees and royalties on the use of characters such as Mickey Mouse and accepted convertible bonds in lieu of debt to get Euro Disney back on track.

The latest extension is the second by Euro Disney's creditors, underlining the difficulty they are having reaching an agreement. The company, which has been in breach of loan agreements since last August, originally had to reach a new accord by the end of March. That had been extended to May 31.

The company may sell $306 million in new shares, including $122 million of stock to Walt Disney, as part of the debt plan, French newspaper Les Echos reported this week. The plan may also include new terms for Euro Disney's debt and for royalties it pays to Walt Disney Co., the paper said.

"Euro Disney's management believes that it is close to agreement with all its lenders," spokesman Boterman said. He would not comment on the newspaper report. Walt Disney Co. spokesman John Spelich would not comment on the debt plan.

coldfire409 · Post by **coldfire409** » Sat May 29, 2004 9:00 pm

I'm suspicious on the timing of this story, because WDW is currently in bargining with Disney, and we are asking for more money, and keeping health care costs under control. Also in the barging sessions we've held up the Orlando Sentinal with the headline "Disney profits soar!"

Dante101 · Post by **Dante101** » Mon May 31, 2004 12:36 am

coldfire409 wrote:I'm suspicious on the timing of this story, because WDW is currently in bargining with Disney, and we are asking for more money, and keeping health care costs under control. Also in the barging sessions we've held up the Orlando Sentinal with the headline "Disney profits soar!"

Don't worry about it. Euro Disney is only partly owned by Disney. All you have to worry about is Disney World profits soaring. F*** the rest of the company. You guys are pulling more than your share.

The other side of the bargaining table will always have a sob story waiting.