News Round Up 2020

jpeterson · Sep 9, 2020

Farro said:
Now someone explain this to me please.

Somebody can correct me if I'm wrong, but this is Disney asserting that they are owed money. I assume this is to get their place in line if the Morocco restaurant company files for banruptcy.

unbanshee · Sep 9, 2020

Farro said:
Now someone explain this to me please.

Morocco needs money, Disney provided a loan, told Morocco that they'll take everything they have if they don't pay it back. Morocco is struggling

Vern60 · Sep 9, 2020

Farro said:
Now someone explain this to me please.

It kind of explains it at the bottom the article

"Essentially, Disney Parks have made a loan of some type to Marrakesh Moroccan Restaurant LLC and has listed tangible property as collateral should the loan not be repaid."

Obviously the 3rd party running the restaurants there are having financial trouble and Disney is basically laying claim to the property, decorations and what not there in case their debt isn't repaid. But the business guys on this site could probably provide much better detail.

Oh, and I hope you weren't be sarcastic? I just thought about that after writing all this, haha.

TheMaxRebo · Sep 9, 2020

Farro said:
Now someone explain this to me please.

Seems like the restaurant group in the Marroco pavilion is short on cash and took a loan from Disney (either directly or against/offset money they owe Disney) and in exchange the physical items in those restaurants are used as collateral, meaning Disney could take ownership of those items if the restaurant grouo is not able to repay the loan

Farro · Sep 9, 2020

Thanks all! Nope, not being sarcastic! I wasn't sure what it all meant.

Sure would hate to lose the food at those places.

Spice Road Table is a hidden gem.

Vern60 · Sep 9, 2020

Farro said:
Thanks all! Nope, not being sarcastic! I wasn't sure what it all meant.

Sure would hate to lose the food at those places.

Well, that's kind of already happened, I mean Tangerine already re closed right? Ya, sounds like chances of ever re-opening are becoming slimmer by the day.

jknezek · Sep 9, 2020

Yep. This is called getting in on the ground floor with your claims for when bankruptcy happens. Looks like Disney knows the restaurant group is soon to be shot and wants to make sure they have a claim filed with clear terms for when assets are distributed in bankruptcy. The loan was backed by things Disney would want to maintain continuity of the physical spaces in the case of a bankruptcy and to have the restaurant(s) up and running again quickly.

Certainly clever to have secured the loan with the hard assets, so the infrastructure won't be stripped bare and, if their claim is upheld, a new management company (or Disney itself) can come in and run the place without having to re-outfit it. Basically the loan is going to end up being a purchase of decorations, tables, cooking equipment, etc... Probably paid more than the assets are actually worth if the loan fails, but being able to keep it all looking the same and seamlessly move on is likely worth something significant to Disney as opposed to have to close it all down while it is stripped and then rebuilt.