EuroDisney Stock Suspended

[Sarangel]

From Reuters:

Euro Disney shares were suspended on Tuesday at the company's request, said pan European bourse operator Euronext, before the theme park operator is expected to make a statement on a restructuring plan.

Debt-strapped Euro Disney has until Sept. 30 to win approval for a financial restructuring plan designed to save it from bankruptcy. The stock last traded flat at 0.32 euros.

The European outpost of the U.S. Disney empire declined comment other than to say it would issue a statement later on Tuesday. It would not say when.

"The company will surely give the details of its much-needed restructuring plan," said a Paris-based fund manager. "There will probably be details on what the banks have accepted and on the level of the capital increase."

Euro Disney has been on the verge of bankruptcy since August 2003, when it said it was talking to its banks about restructuring debt totaling 2.4 billion euros ($3 billion).

A restructuring became necessary after Euro Disney opened a second park, The Walt Disney Studios, on the doorstep of the original Magic Kingdom, which increased overheads but failed to bring in sufficient additional visitors.

That meant the operator of what has become the biggest tourist attraction in Europe struggled to turn a profit, let alone service its debt.

At the end of June, Euro Disney, its 39 percent parent the Walt Disney Co and its major banks pencilled in terms that would let the operator keep functioning.

The plan involved a 250 million euro rights issue and the deferral of interest and royalty payments to the Walt Disney Co for use of Mickey Mouse and other characters.

But the plan got a thumbs-down from hedge funds that had purchased roughly 25-30 percent of Euro Disney's distressed debt from its banks and which held out for better terms.

On Aug. 2 Euro Disney, announcing failure to reach an accord, said it had won another two months' breathing space and had "sufficient liquidity" -- 62.7 million euros -- to last until Sept. 30.

 

[twatters]

not surprised euro disney is in such a mess. Its very expensive to visit. I live in Ireland and have been to wdw twice and euro disney twice. it cost me the same amount to go to florida wdw for two weeks as it did to stay in euro disney for three nights. Plus the staff are far friendlier and more helpful in wdw. The parks only being two in paris are not as clean as wdw. They need to do something

 

[wilki32]

I agree Twatters
We're on our fourth trip to WDW and had our first trip to DLP in July. One of the things that brings us back again and again to WDW is the atmosphere and the welcome, sadly lacking in DLP!!!
But, I do feel for the staff there, who are mainly French, when people are getting irate with them because they can't speak English, German, Polish, Japanese...etc. It must then be hard to get 'up' and be friendly when they are wondering where the next one is coming from. Maybe if they could overcome this there would be more success.
I think the biggest problem is what it costs, 3 nights at Sequia Lodge (with tickets for the parks and the channel tunnel) just over £1000! Our 6 nights at Movies in November is £250, yes I know that doesn't include tickets flights etc but the math just doesn't work. Maybe if the price was brought down to a reasonable level then more people would visit.
Anthony