Euro Disney granted EUR 250m lifeline

17th December 2004, Comments 0 comments

PARIS, Dec 17 (AFP) - Shareholders of the Euro Disney theme park near Paris overwhelmingly approved Friday a capital increase of at least EUR 250 million (USD 331.6 million) to help the company restructure its way out of a debt mountain.

PARIS, Dec 17 (AFP) - Shareholders of the Euro Disney theme park near Paris overwhelmingly approved Friday a capital increase of at least EUR 250 million (USD 331.6 million) to help the company restructure its way out of a debt mountain.

Ninety-eight percent of the votes at a shareholders meeting approved the issue of the lifeline in conjunction with Euro Disney's restructuring plan for debt of EUR 2.4 billion.

The approval was the final step in the restructuring plan agreed by the company's lenders and its US parent company, The Walt Disney Company.

Shareholders at the meeting, where 18 resolutions were presented, also approved a complex legal reorganisation of the company, linked to the financial restructuring, that creates a holding company.

Tourist visits to the theme park near Paris have been disappointing, and the arrival of low-cost airline tickets has drawn many travelers away from northern France to the sunnier climes of Spain and other Mediterranean countries.

Euro Disney chief executive Andre Lacroix announced Friday that the company would unveil a new attraction each spring for the next four years.

The first of these would be a new version of the popular Space Mountain, dubbed Space Mountain Mission 2, that will open in 2005.

Some of the planned attractions would be built in Walt Disney Studios and be aimed more specifically at children.

According to a document posted on its website ahead of Friday's meeting, Euro Disney expects to remain loss-making "for several of the coming years".

The resumption of licence payments and the writedowns from consolidation of its financing units will continue to affect operating and net profit, Euro Disney said.

Euro Disney last month announced that its net loss for the year to September 2004 had more than doubled to EUR 145.2 million, from EUR 58.3 million, as sales edged up to EUR 1.048 billion from a pro forma EUR 1.047 billion.

Shares in Euro Disney were down 3.85 percent at EUR 0.25 euros Friday in early afternoon trading in Paris, while the CAC-40 index was off 0.95 percent at 3,774.44 points.

© AFP

Subject: French News

0 Comments To This Article