Euro Disney shares surge on debt delay deal

30th June 2004, Comments 0 comments

PARIS, June 30 (AFP) - Shares in the Euro Diney theme park east of Paris surged by 7.89 percent to EUR 0.41 in early trading on Wednesday in response to arrangements giving the company a delay in making payments due to creditors.

PARIS, June 30 (AFP) - Shares in the Euro Diney theme park east of Paris surged by 7.89 percent to EUR 0.41 in early trading on Wednesday in response to arrangements giving the company a delay in making payments due to creditors.

On Tuesday the price of the shares gained 8.57 percent after the arrangement was announced.

One Paris stock trader, who declined to be named, commented that most of the trading in the shares was being done by hedge and speculative funds which made the price volatile.

Euro Disney said on Tuesday that a sufficient number of creditors had agreed to put aside their rights to debt payments until July 31 in order to give all lenders to the company time to review and approve a draft refinancing plan set out on June 8.

That plan, intended to enable Euro Disney to restructure its finances and overcome a financial crisis is based on the raising of EUR 250 million (USD 302 million) of capital.

The US parent company Walt Disney Company would provide EUR 100 million of this and would also provide a line of credit of EUR 150 million for 10 years.

 

© AFP

 

Subject: French news

 

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