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article imageDisneyland Paris gets one billion euro bailout from Walt Disney

By Anne Sewell     Oct 6, 2014 in World
It seems the economic crisis in Europe has had its effects on the company which operates Disneyland Paris. While the park is a top draw for European visitors, there has been a sharp fall in the number of visitors and what they spend there.
In fact, shares in Euro Disney have recently plunged by almost 12 percent in initial trading in the city. Now the park’s American parent company, Walt Disney, is coming to bail Disneyland Paris out. Euro Disney announced Monday that the parent company will give them a refinancing package of one billion euro in order to overcome the crisis.
According to a statement from the company, this package will include a cash injection of 420 million euros ($526 million) along with a conversion of debt owed to the parent company in the sum of 600 million euros ($752 million).
In the statement Tom Wolber, Euro Disney’s president, said he blames the current economic climate in Europe for their problems, saying, "Disneyland Paris is Europe's number one tourist destination, but the ongoing economic challenges in Europe and our debt burden have significantly decreased operating revenues and liquidity."
He added that the emergency financial plan is necessary to improve their financial health and also assist in the company’s abilities to make investments in Disneyland Paris in order to “enhance the guest experience."
Located on the outskirts of Paris, Disneyland Paris has had a number of problems since opening in 1992. However, the park has attracted over 275 million visitors. With the current economic crisis, the park has pulled in 400,000 less visitors between January and June this year, a drop of six percent.
Walt Disney owns 40 percent of Euro Disney, with a further 10 percent owned by the Saudi prince Al-Waleed bin Talal. According to Reuters, while he approves the cash injection, the prince has not yet decided whether he will subscribe to the increase in capital.
French sources:
More about euro disney, Paris, France, Bailout, Walt disney
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