Disney bails out Euro Disney
Euro Disney, the theme park complex on the outskirts of Paris, has agreed a €1bn (S1.25bn) debt restructuring deal backed by its biggest shareholder, Walt Disney.
Walt Disney owns a 39.8pc stake in the Parisian theme park and a further 10pc is in the hands of Saudi billionaire Prince Alwaleed. American fund manager Invesco built up a 5pc stake in the business earlier this year to become the third biggest investor.
Euro Disney said that it will embark on a €420m ($530m) rights issue open to all investors, backed by Walt Disney, which will improve the cash position of the Paris business by €250m.
In addition, around €600m ($757m) of the group’s debt owed to Walt Disney will be converted into equity, while credit lines extended to Euro Disney by its parent will also be consolidated.
Although Euro Disney is Europe’s most-visited tourist attraction attendance slipped 6.9pc last year to 14.9m – still nearly as many visitors as the Eiffel Tower and the Louvre combined. The French comprise 51pc of all the visitors to Euro Disney, followed by 14pc from the UK.
However, the decrease in attendance left Euro Disney with a €27.5m ($34.7m) operating loss on a revenue of €1.3bn ($1.65bn) last year.
