MOSCOW, October 6 (RIA Novosti) - Euro Disney has made a financial deal with its major stakeholder Walt Disney Co, amounting to 1 € billion and allowing the company to overcome its recent economic decline, Reuters reports.
"Disneyland Paris is Europe's number one tourist destination, but the ongoing economic challenges in Europe and our debt burden have significantly decreased operating revenues and liquidity," said Tom Wolber, president of Euro Disney, in a statement cited by Reuters.
Euro Disney, one of the most loved amusement parks in the world, has recently been suffering from the economic recession, resulting in 1.75 € billion debt.
According to Bloomberg, the deal will provide for debt restructuring, stock sales and help Euro Disney to overcome its economic problems. The initiative is expected to increase Euro Disney’s capital by 420 € million and convert 600 € million arrearages owed by the company to its American parent into Euro Disney equities. It also would improve financial positions of the company, allow substantial business investments and significantly increase the number of Euro Disney’ visitors.
Euro Disney, located in the outskirts of Paris, became one of the most popular entertainment resorts worldwide since its opening in 1992. However, the company has been suffering from significant financial losses in the last few years as Europe’s economic crisis has had a negative impact on consumer expenditure.
