Funding crisis floors Euro Disney

Evening Standard UK ^ | August 1, 2003 | Ross Tieman in Toulouse

[Liz]

EURO DISNEY'S future is in the hands of the French government after it breached banking covenants following a slump in visitor numbers.

The shares were suspended this morning after crashing 23%. The price levelled out below par value of e0.76, at e0.52, down 14.75%, when trading resumed.

Biggest banking creditor is the Caisse des Depots et Consignations (CDC). The State-owned merchant bank helped refinance Euro Disney in the 1994 financial restructuring required within months of its pan-European stock market float.

With tens of thousands of jobs at stake in the Disneyland Paris theme park, the French government will use all its leverage to ensure a debt rescheduling is agreed.

Euro Disney chief executive Andre Lacroix, and US finance director Jeff Speed, both appointed last month, have opened talks with the CDC, BNP and CreditAgricoleIndosuez, its three main lenders. They can now demand instant repayment of e1.7bn (£1.2bn).

Euro Disney also said it could not repay e168m of credit from the Walt Disney Company, due next June.

But Lacroix was confident his company, its US parent - the Walt Disney Company - and banks would reach 'a mutually acceptable resolution to future financing needs'. In the nine months to June, revenue rose only 2% to e748m, despite the opening of a second Paris theme park, Walt Disney Studios, last year.

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[shadowman99]

It's bad for Disney and it's bad for France.

This had been a pretty good Friday!

[shadowman99]

had has

[Liz]

It's bad for Disney and it's bad for France.

I love a two-fer.

[Zathras]

They could always have another "Gay Day"

[wordsofearnest]

What about all that money they saved cancelling the nightly fireworks?? It seems that the french army kept surrendering.

[Liz]

Now that's funny.

[xp38]

I went to it in 1996 as a break on my tour of Europe. I needed a change from museums and churches. It wasn't cheap but very little is in Europe. I had a good time there.

[longtermmemmory]

But the euro is a stong currency!

But the euro ecconomy is booming!

But france is the most productive eurocountry!

and Mr. E. is not in the closet...

(sarcasm off)

[theFIRMbss]

[TexConfederate1861]

Have you heard of the Latest Disney Character?

It's "Pierre" the Surrender Monkey!

[ChewedGum]

What about all that money they saved cancelling the nightly fireworks?? It seems that the french army kept surrendering.

I can hear a rim-shot and cymbal splash right after reading that. (Ba-Dum-Spiiish)

Gum

[Liz]

Caption: " Oh, please, Mickey, get me outta this mess."

[Liz]

A lot of people thought they'd make a bundle when EuroDisney stock was first issued but it collapsed fast.

[Liz]

Heheh......Garcon, put down le bang-bang, non?