Euro-Disney says all lenders have approved waivers to July 31

By Jeff Pines

Washington, June 29 - All of Euro Disney SCA's lenders have agreed to extend the company's waivers until July 31, the company said.

This will give all of them enough time to review the memorandum of understanding approved by Euro Disney, The Walt Disney Co., Caisse des Depots et Consignations and approved by the steering committee of the other lenders.

The memorandum calls for the Marne la Vallee, France-based theme park and resort company to obtain a new €150 million line of credit from Disney for seasonal liquidity needs. The facility would shrink to €100 million after five years. In addition, €290 million of lease payments to Disney would be converted into a minority equity position in a subsidiary that would hold just about all of Euro Disney's assets and liabilities.

Under the memorandum, €110 million on its Disney line of credit and €58 million of deferred interest payable to Caisse des Depots et Consignations would be converted into subordinated long-term borrowings.

Also, payments of about €300 million of principal would be deferred for 3½ years.

The company's security deposit of €100 million would be paid to the lenders and Disney would agree to defer €25 million of management and royalty fees for fiscal years 2005-2009. Also interest payments to Caisse des Depots of €22.5 million would be deferred for fiscal years 2005-2014.

A €250 million rights offering under which Disney has agreed to subscribe to €100 million is also called for. The memorandum requires Disney to own at least 39% of Euro Disney until Dec. 31, 2016.

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