The Paris Court of Appeal rules that recapitalization legal

[Jonjo]

The final part of the long drawn out recapitalization of Euro Disney happend yesturday on (8 September 2015) when the Paris Court of Appeal ruled that the AMF (Autorité des marchés financiers) [the French Financial Markets Authority] acted legally in their approval of the Euro Disney S.C.A. recapitalization.

The legal action was filed in the Paris Court of Appeal on 9 April 2015 by CIMA (Charity & Merger Arbitrage Fund) against the decision made by the AMF to authorize the Euro Disney mandatory cash tender offer which is part of the recapitalization plan by The Walt Disney Company (TWDC) for the financially troubled Disneyland Paris resort.

I expect DLP will now move quickley to complete the recapitalization and formalise the status of the shareholders club. So this will be last chance that ex-members of the shareholders club who hold 20 shares can take advantage of the loophole that was created since April due to this legal action to buy the additional 80 shares they need to rejoin the club. EDL shares are presently trading at €1.30.

 

[markpsych]

Thanks Jonjo.

We're still holding 20 shares.....are there any significant membership benefits now if you do rejoin?

 

[tennisfan]

Thanks Jonjo.

We're still holding 20 shares.....are there any significant membership benefits now if you do rejoin?

Same as before but they soon you will have to hold more shares then the 100 to be a member, I think you will soon need 900 to be a member

 

[ThBa]

Here is the official statement:

In a constant concern to better meet members expectations, to bring a quality service, relevant information on the Company and to preserve equity for the existing members, Euro Disney S.C.A.'s Shareholders Club announces the suspension of new memberships (new shareholders) as of Thursday, January 15th, 2015, for at least the implementation period of the recapitalization.

The future of the Shareholders Club is not affected by this operation. All current members of the Club will remain members afterwards. The advantages and services will be identical.

After this period of suspension, an analysis on the threshold of the minimum quantity of shares to be held by the new members will be led before the coming into force of new membership criteria and/or new general conditions (terms) of the Shareholders Club.

I think that:

a) nothing will be changed for all current members (100 shares minimum as of 15.01.15)

b) there will be no new memberships until new criterias will come up (and I´ve heard about 900 shares also)

So I guess you can not buy 80 shares and be a shareholder now.

Hope that is right ?

 

[Jonjo]

Members get the same perks and benefits as before.

As an exsiting shareholder you have until 24 September to buy the additional 80 shares you need to re-join the shareholders club. You can buy these aditional shares for 1 euro each under the cash tender offer from Euro Disney. If your quick and your broker is clued up you should be able to buy the shares and get all the paperwork to the shareholders club with in a few days before the OPO closes on 24 Sept.

EDL shares were trading at 1.33 euros on the Euronext today.

Quite a few ex-shareholders with only 20 shares have been taking advantage of this loop hole to rejoin the club.

Membership to new applications are presently suspended until the new criteria for membership is calculated. A figure of 900 shares was mentioned at a Shareholders Q&A last October.

 

[SWofDisorder]

I was glad to renew and get back to Salon Mickey on our last trip. I hope everyone does renew and enjoys the Salon.

 

[Jonjo]

After having their claim dismissed by the Paris Court of Appeal on Tuesday, French hedge fund CIMA plans to appeal to the Supreme Court and bring a civil claim for damages against The Walt Disney Company.

CIMA believes that the capital gain on the property rights of Euro Disney S.C.A. were not taken into account and estimate that the net worth of Euro Disney S.C.A. would be € 2.9 billion or € 3.70 per share.

Shareholders were offered €1.25 per share by The Walt Disney Company under Euro Disney recapitalisation plan.

“We regret that the judicial authority has validated an offer to an artificial price which is not in the interests of minority shareholders,” said CIMA lawyer, Julien Visconti. He finds that the court “refuses to rule on the merits of the various arguments raised”. He declared the Paris Court of Appeal incompetent and is in favour of taking the case to the civil and criminal courts.

CIMA which has already filed a criminal complaint against The Walt Disney Company for misuse of corporate assets, presentation of false accounts and the dissemination of false information. They also plans to launch a civil complaint against TWDC for the damage the company has done to Euro Disney over the last 25 years.

I expect this will delay Phase 4 of the recapitalisation.

 

[Ware Bears]

Thank you for keeping us updated, Jonjo.

 

[DLPDreams]

Jonjo - you are such a star helping us out on here.

I have had a change of heart and have decided (after our recent WDW holiday) that I'd like to renew. The only issue is it sounds like I have very little time to do so.

ETA - I have now bought the shares and been in touch with the SHC!

Keep up the good work keeping us posted Jonjo!