EuroDisney Dodges Bullet

[Sarangel]

From Bloomberg.com:

Euro Disney SCA, Europe's largest theme park company, said creditors granted it another extension to renegotiate the terms of its loans, buying the unprofitable company time to avoid default.

Euro Disney, 39 percent owned by Walt Disney Co., has until June 8 to work out a memorandum of understanding with its parent, the Caisse des Depots et Consignations and representatives of other lenders on that repayment. It has until June 30 to get the approval of the rest of its creditors, the Marne-la-Vallee, France-based company said in a statement.

"Euro Disney's management believes that it is close to agreement with all its lenders,'' spokesman Pieter Boterman said.

Chief Executive Andre Lacroix, who joined the company last year, has been seeking ways of improving sales and stemming losses as he renegotiates Euro Disney's loans with banks to avoid default. Increased admission prices and higher spending per visitor improved theme-park revenue by 6 percent in the first quarter. Total sales were unchanged at 474 million euros.

"Absent the timely agreement or final approval of this memorandum of understanding the waiver would expire, and the company would then be unable to meet all of its debt obligations,'' Euro Disney said in the faxed statement.

Euro Disney received a two-month extension on debt negotiations in March.