Debt restructuring vital to meeting financial obligations
PARIS — Shares in EuroDisney lost 10% in early trading on the French Bourse Friday, after the theme park operator reported net losses of e108.9 million ($130 million) for the six months to March 31 compared with an $98.8 million deficit a year earlier.
The stock recovered to some extent later in the day and closed down e0.02, or 4.8% to e0.42 (50¢).
Sales were up 1.6% at $566 million. Equally disturbing for investors, the company that operates Disneyland Paris and the Walt Disney Studios theme park warned that it would be unable to meet its financial obligations if an agreement with lenders on debt restructuring was not reached by the end of May. Company, carrying debts of about $2.86 billion, has already extended its repayment deadline, which came up first at the end of March.
The operator’s topper, Andre Lacroix, said that while it is of utmost importance for the company to reach an agreement with lenders, EuroDisney, 39%-owned by Walt Disney, must also focus on growth and marketing of its core biz.