You will be redirected back to your article in seconds

Auditors back Euro Disney boss

KPMG Peat Marwick execs finally handed over their independent audit of Euro Disney Monday, providing a small shot in the arm for the financially troubled theme park.

The park’s bankers would not comment on the report, but KPMG is thought to have supported the business plan put in place last year by Euro Disney chairman Philippe Bourguignon.

With the audit now in their hands, Euro Disney’s bankers are in a position to reopen negotiations with the Walt Disney Co. in an attempt to strike a deal to refinance the park. Euro Disney is sitting uneasily on about 20 billion francs ( $ 3.4 billion) of debt and Disney is pushing the park’s 63 bankers to kick in about half of the $ 2 billion that is needed to bring that debt to a manageable level.

Walt Disney is committed to providing the day-to-day funding to keep the park open until March 31, although there are unconfirmed reports that the Burbank-based entertainment giant may extend the deadline to July.

Bourguignon has admitted that without Walt Disney’s current cash lifeline, the park cannot finance itself.

KPMG would not comment on its findings Monday and members of the nine-bank steering committee that faces Walt Disney said they had been sworn to a confidentiality agreement while the negotiations are under way.

But it appears that KPMG feels Bourguignon is on the right track with his business plan.

The main problem facing the huge theme park, the report suggests, is that it is weighed down by debt repayments and reliance on income from property development that never occurred.

The banks must now decide whether they will inject more funds into Euro Disney. Opinion among the money men is divided.

However, the banking steering committee is widely expected to strike a deal with Walt Disney, in the process demanding that Burbank reduce the fees and royalties it takes from the park.

Walt Disney execs have said that the company could walk away from Euro Disney if a satisfactory agreement is not reached.

More Biz

  • pharrell brain child show

    'Blurred Lines' Flares Up Again - Marvin Gaye Family Claims Pharrell Perjured Himself

    Like a zombie that just won’t stay dead, the “Blurred Lines” case keeps coming back. While the 2015 verdict, in which Pharrell Williams, Robin Thicke and the song’s publisher were ordered to pay nearly $5 million to Marvin Gaye’s family for infringing upon the late singer’s 1977 hit “Got to Give It Up,” was basically [...]

  • WGA Agency Packaging Fight Placeholder Writer

    WGA-Agency Showdown: Role of Showrunners at Heart of Legal Arguments

    The Los Angeles courtroom of U.S. District Judge Andre Birotte was packed with well-dressed lawyers on Friday morning, eager to watch a high-stakes brawl between Hollywood’s largest talent agencies and the Writers Guild of America. Birotte allowed only four lawyers from each side to sit at each table, leaving the vast majority of the attorneys [...]

  • 700700 + Ted Turner Dedication. December

    Ted Turner Tributes Established With WarnerMedia Gift to University of Georgia

    WarnerMedia has established a scholarship, internship program and exhibition hall at the University of Georgia to be named after maverick media mogul Ted Turner. The company has gifted $550,000 to the university to create the Ted Turner Scholarship Fund, for students attending the school’s Grady College of Journalism and Mass Communication, which is also the [...]

  • WGA Agents Contract Tug of War

    Judge Leans Toward Agencies' Position in Writers Guild Antitrust Suit

    A federal judge indicated on Friday that he will allow the three major agencies to pursue their antitrust lawsuit against the Writers Guild of America. The WGA has urged U.S. District Judge Andre Birotte to throw out the suit, arguing that its actions in its ongoing battle with the agencies are protected under antitrust law. [...]

  • Keli LeeStep Up Women Network 9th

    Keli Lee Exits ABC Studios International as Disney Considers Division's Fate (EXCLUSIVE)

    ABC veteran Keli Lee has left the international arm of ABC Studios as Disney considers the future of the London-based content unit, Variety has learned. Sources said Disney has told the creative community that there “has been a re-evaluation of ABC Studios International” and that it is re-assessing “the creative direction” of the business. There [...]

  • Biggest Scandals Feuds and Apologies of

    Biggest Scandals, Feuds and Apologies of 2019

    Variety looks back on some of the biggest scandals, feuds and apologies of 2019: College Admissions Scandal Wealthy parents including Felicity Huffman and Lori Loughlin were charged with bribing school officials to get their unqualified kids into prestigious universities. Shane Gillis Executives at “SNL” hired, then fired, Gillis in September, before the new season started, [...]

  • Biggest Media Moments of 2019

    From 'Catch & Kill' to Shepard Smith: The Biggest Media Moments of 2019

    Variety looks back on some of the most memorable media events of 2019: ‘Catch & Kill’ Reopens Wounds at NBC News Ronan Farrow’s book relitigates his complaints that NBC News tried to tamp down his investigation of harassment and assault allegations against Harvey Weinstein. NBC News denies the claim. The book contains new allegations against [...]

More From Our Brands

Access exclusive content