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Walt Disney in €1bn debt deal with Euro Disney
EURO Disney, owner of Disneyland Paris, yesterday announced a €1bn (£785m) recapitalisation plan to help it recover amid a souring European economy.
The plan is backed by parent company Walt Disney, which owns almost 40 per cent of Euro Disney and had to bail it out in 2012 by taking over Euro Disney’s loans from a syndicate of banks.
Under the new plan, Walt Disney will offer a cash contribution of around €420m to Euro Disney, and will convert €600m worth of its debt into equity. The hope is to lift Euro Disney’s cash reserves by around €250m and reduce its debts to Walt Disney to just under €1bn.
The plan failed to impress investors, with shares in the group closing down 9.54 per cent at €3.13.