Euro Disney close to restructuring deal

Euro Disney has reached an agreement with its creditors that should ensure its survival from a €2.4bn debt.

The loss-making theme park will now be allowed to restructure existing debt and raise new debt and equity on the condition that all lenders, shareholders and the regulatory authorities approve.

Among those holding stock in the Paris theme park are Walt Disney, French state-owned bank Caisse des Depots et Consignations and representatives of other lenders who include BNP Paribas.

Euro Disney had repeatedly warned that without a restructuring of its finances it would be unable to meet its repayments.

Shares in the company rallied briefly and rose 6% to 37 cents on the news today.