OPINION: Disney will file for bankruptcy.

[Elijah Abrams]

Because of the coronavirus delaying their films, closing their parks, causing their stocks to take a hit, I fear that The Walt Disney Company will end up filing for either Chapter 11 or Chapter 7 bankruptcy. "Too big to fail"? I don't think so!

 

[Carol_]

I disagree. Yes, they’ll take a hit. But their business is enviable. People aren’t clamoring to go eat at their neighborhood diner, but Disney’s client base is dreaming of getting to spend any extra money they have on Disney.
I know I am. Heck, planning a Disney trip is part of my daily therapy lately.

 

[EveDallas]

No. Of all the companies that I'm worried about, Disney isn't even on the last. They'll be fine.

 

[QueenIsabella]

Well, if things continue to go badly, they might do a "reorganization" type of bankruptcy. Sorry, it's early, i don't remember which one is which. But, I don't see them doing a "liquidation" type of bankruptcy any time soon. One advantage Disney has is, they have many divisions. Now, all are affected, to one degree or another, but the pandemic will recede eventually, and some divisions can recover quickly. Heck, Disney+ is probably doing great right now. DCL and the theme parks, not so much. The movie and TV side of things--tough to say, it depends how long this goes on.

 

[BuckeyeBama]

They just leveraged themselves to buy Fox, so who knows. But I don't really care. Even if they file, it will be in an effort to save themselves at the expense of their creditors. In other words, if it happens it will be a corporate strategy, nothing more.

 

[nkereina]

I don't think bankruptcy is in their future at this point, but I do think we'll see projects cancelled or delayed. Whether films put on hold or park plans that are early on or not yet started. There will definitely be an impact.

 

[pryncess527]

Very possible, their debt is at like a 10 year high, bad timing. It wouldn’t be a “we never open the parks again” kind of bankruptcy but I could totally see a corporate restructuring

 

[china mom]

Disney stocks are opening at $105 today - that's is where they were just 18 months ago.

 

[sailorstitch]

I'm far more worried about the companies that were already in the red before this whole thing started. (Sears, Game Stop, American Girl, etc) Disney will take a hit, but they'll be fine in the long run.

 

[pilesoflaundry]

I'm far more worried about the companies that were already in the red before this whole thing started. (Sears, Game Stop, American Girl, etc) Disney will take a hit, but they'll be fine in the long run.

I told my husband I don't think Sears and Pier1 will make it out of this. american girl and gamestop are questionable but Disney will. It will be rough for a bit like 2001, 2008-09 but they will be just fine.

 

[fhtpdw20]

It will be interesting to see what happens with the 3 cruise ships in the pipeline too.

 

[shelemm]

In terms of the films, demand for streaming movies will go up. One of the few business ventures that will see an increase.

 

[GRUMPY PIRATE]

I don't think they will file. What I do think is that they will start restricting the number allowed into the parks to half of current capacity. And of course, the admission price will double.

 

[ChristineLovesMickey]

If Disney files for bankruptcy, our country is really up a creek without a paddle.

 

[wvjules]

If they do it will be a Chapter 13 and they will be fine. Not worried about any of these big businesses at all.

 

[Deploraboo]

They just raised addl 5 plus billion is cash via debt issuance and have a fully undrawn 12 plus billion revolver. Plus cash on hand.

theyll be fine.

 

[RamblingMad]

Because of the coronavirus delaying their films, closing their parks, causing their stocks to take a hit, I fear that The Walt Disney Company will end up filing for either Chapter 11 or Chapter 7 bankruptcy. "Too big to fail"? I don't think so!

I find that unlikely. I’m fairly certain its credit rating is investment grade.

 

[aristocatz]

Because of the coronavirus delaying their films, closing their parks, causing their stocks to take a hit, I fear that The Walt Disney Company will end up filing for either Chapter 11 or Chapter 7 bankruptcy. "Too big to fail"? I don't think so!

I'm more worried about my own bankruptcy when they rack up the prices after this is over to try and make up for their losses!!

 

[Planogirl]

Disney has an enormous amount of debt due to the Fox purchase and other projects plus they've raised money twice already through debt issuance. They will at the very least want to clear some of that debt when they can. I expect projects to take a hit and they might even sell some assets.

 

[Donald13]

No but serious question. How much as they losing each day they are closed?