Disneyland Paris has been in a bit of financial trouble ever since its opening in 1992. This week, Variety released an article stating that Disneyland Paris has created a bailout plan to help with the theme park’s debt. The plan involves a $1.25 billion recapitalization.
Provided in a statement given by Disney, “This recapitalization plan would improve Euro Disney Group’s financial position and enable it to continue investing in the guest experience. With this effort, we are demonstrating the Walt Disney Company’s continued confidence in Disneyland Paris, which remains the number-one tourist destination in Europe.”
As of now, Disneyland Paris is not fully owned by the Walt Disney Company. Ten percent is owned by Saudi Prince Alwaleed, forty percent is owned by Disney and the rest is publicly traded on the Paris Euronext exchange.
The article goes on the state that the theme park will receive a cash infusion of $526 million and will convert the $750 million of debt to equity. The deferment of loan payments by Disney will last till 2024.
President of Euro Disney, Tom Wolber stated, “The ongoing economic challenges in Europe and our debt burden have significantly decreased operating revenues and liquidity. This proposal to recapitalize the Euro Disney Group is essential to improve our financial health and enable us to continue making investments in the Resort that enhance the guest experience.”
With the hopes of this new bailout plan to be successful, what is your take on the purposed plan?
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