Yes. My kids are amped for our May trip to Disneyland. Rescheduling means my 2 year old is probably 3 and my hotel has since increased its points beyond the number i have, so it also means paying cash for a night at least (we’ll do it, but ugh).
I read through Disney’s last 10-K the other day. They have $94bn in equity, giving them a ton of leeway to issue additional bonds or increase working capital well before they go Chapter 11. My belief is that banks/investors will view Disney bonds as safe to back. They are also VERY good at leveraging their IP to create revenue streams. AND they could sell non-core businesses like cable networks or even ABC to raise cash if need be. I’m not offering investment advice, but as a Disney fan, I wouldn’t worry about them going Chapter 11.
Just a touch more color: TOTAL theme parks and resorts expenses last year were $17bn. Total Studio expenses were $8bn. Even if they had the same operating costs while closed (and they don’t), they could be closed for several years before Disney ran out of assets to borrow against.
Borrowing more money is the last thing they want to do, I think. I think they will cut expenses to stretch out their cash until revenue streams come back on line.
It is known in the investment community as an 8K filing. An 8K filing is required by the SEC whenever a public company has a significant change in operating conditions.
There is a worst case scenario for Disney -- they have to pretty much abandon or sell the parks. They MAY not have the money to get them back up and running. I pray we don't see that.
Any source on this, or just pure speculation?
