Euro Disney reaches restructuring agreement that calls for new debt, equity financing

By Jeff Pines

Washington, June 9 - Euro Disney SCA reached an agreement with its primary creditors on a restructuring of the company's debt and issuance of new debt and equity, the company said in a 6-K filing with the Securities and Exchange Commission Wednesday.

Euro Disney's creditors include The Walt Disney Co., Caisse des Depots et Consignations, Calyon, which is Credit Agricole SA's corporate and investment bank, and BNP Paribas. Calyon and BNP Paribas are members of the steering committee for lenders other than Disney and Caisse des Depots et Consignations.

All of the lenders, Euro Disney said, must approve the memorandum of understanding containing the terms by July 31, Euro Disney said. Shareholder approvals, regulatory authorizations and other "significant milestones" will need to be met too.

Euro Disney also needs all of its lenders to approve its debt waiver by June 30.

According to the company's most recent financials, Euro Disney owes its lenders €2.4 billion.

Without the waiver, its lenders could demand immediate payment and Euro Disney does not have the cash to pay them, the company said.

The new financing will be used to boost the company's liquidity and to invest in new rides and attractions and resort assets.

Disney, which owns a 39.1% stake in Euro Disney, is the company's largest shareholder and is also providing it with a €167.7 million line of credit.

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