Any Chance DVC (or DVD) Could Go Bankrupt???

[artvandelay]

Is DVC, or DVD, a separate company under the Disney umbrella or just part of the Disney Corp? DVD and DVC are in the midst of it largest expansion ever with four new resorts under construction. I would think that in the current economic climate timeshare sales are down. I know Marriott's were down 40% last quarter.

So with a lot of money going out for construction, timeshare sales down, and credit tight, could they go bankrupt? If they did, what would happen to our ownership shares? Would TWDC bail them out?

Please don't flame me, it was just something that I thought of and wanted to see if anyone had any answers.

 

[Brian Noble]

DVD is part of TWDC. I think the chances of the broader company failing are very very low.

The member-owned portions of the resorts are, in many ways, independent. However, the operating costs of the resorts are paid by Dues, and those get paid whether the member travels or not. If the member does not pay Dues, Disney (eventually) forecloses and those points become property of DVD.

So, I think the chances of any real adverse effects are low.