Euro-Disney gets two-stage extension to waiver until June 30

By Jeff Pines

Washington, May 28 - Euro-Disney SCA said it obtained a two-stage extension to its waiver from lenders and The Walt Disney Co. that could give the theme park and hotel company until June 30 to reach a deal. The existing waiver was due to expire on May 31.

The first stage of the extension will give Marne-la-Vallée, France-based Euro-Disney until June 8 to let the company, Walt Disney, Caisse des Dépôts et Consignations and other lenders' representatives finalize a memorandum of understanding for resolving the company's financial problems.

If this memorandum is agreed on by June 8, Euro-Disney said it will get the second extension. The company will then get other concessions, such as extending the maturity of Euro-Disney's €167.7 million line of credit until June 30, while the other lenders have time to review and decide on the memorandum. As of March 31, Euro-Disney had an outstanding balance of €110 million on its Disney line of credit, which without the extension will mature on June 10.

Without the extensions and agreements, Euro-Disney said it would not be able to meet its financial obligations.

For the first half of 2004, the company posted a €108.9 million loss compared with a pro forma loss of €95.9 million loss for the same period in 2003 and a reported loss of €82.7 million for the same period in 2003.

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