Euro Disney S.C.A. announces a proposal for a €1 billion recapitalization

Started by matt8594, October 05, 2014, 09:48:04 AM

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matt8594

Has anyone else been concerned by the information below:

http://www.france24.com/en/20141003-eurodisney-hold-special-meeting-cash-crunch-sources/?aef_campaign_date=2014-10-03&aef_campaign_ref=partage_aef&ns_campaign=reseaux_sociaux&ns_linkname=editorial&ns_mchannel=social&ns_source=twitter

Apparently a meeting has been called with workers councils in France concerning the company's cash flow. As anyone with reasonable financial knowledge will know, inadequate cash flow spells disaster.

The question is would Disney allow it to fail, I would it bail it out again?

LotsoHugginBear

Read it Friday and was shocked but not surprised.

Disneypluto

I am shocked too to hear about this...maybe if they made it cheaper more familys could go and visit the magic of disney.. :)

msRavenswood

There are rumours that TWDC might completely or partially take over. Monday is a few hours away, we'll just have to wait and see.

DisneyManiac

msRavenswood mentioned this a rumour, so what would happen?

DisneyRon

Quote from: DisneyManiac on October 05, 2014, 06:01:49 PM
msRavenswood mentioned this a rumour, so what would happen?

Given that Disneyland Paris currently employs over 15,000 staff (heard it from my Tour guide during my last visit), I assume a big round of restructuring. Staff is going to be a very big chunk of the fixed cost of the park, so reducing that will give a lot of gains over a relatively short period of time.
After that, probably investing money to get the quality of the parks up (perceived or otherwise), to draw more guests.
Don't count on any drops in price, if anything, expect them to go up.

msRavenswood

There's a big discussion taking place on Twitter and Facebook at the moment with various rumours flying around. I think we should stay optimistic and try not to lose our heads.

Rocketeer

Can Burbank take full control? I thought they were prevented from owning a majority, or have the French laws been softened in that regard?

And time is of the essence, would the EU Competition Commission have to get involved? I don't want some drawn out process to loom over the resort.

Fingers crossed for a positive outcome tomorrow.


"We're not trying to entertain the critics ... I'll take my chances with the public." - Walt Disney

Rocketeer

As others have said, a restructuring would be the first point of order. Don't expect them to be green lighting refurbs and new attractions hand over fist.

You've got to right the ship before setting course.


"We're not trying to entertain the critics ... I'll take my chances with the public." - Walt Disney

msRavenswood

Quote from: Rocketeer on October 05, 2014, 06:40:54 PM
Can Burbank take full control? I thought they were prevented from owning a majority, or have the French laws been softened in that regard?

And time is of the essence, would the EU Competition Commission have to get involved? I don't want some drawn out process to loom over the resort.

Fingers crossed for a positive outcome tomorrow.

That's what some have been debating. Perhaps TWDC can't take total control because of French laws being in the way. Who knows, maybe they will partially take over or something that doesn't cross our minds will eventually happen.

Rocketeer

I guess it depends on just how much stock they can own. Even if its the maximum allowed under the law then it'd be all for the better.

Whatever it takes to save the resort and move it forward, it has to be done.


"We're not trying to entertain the critics ... I'll take my chances with the public." - Walt Disney

msRavenswood

Quote from: Rocketeer on October 05, 2014, 06:53:27 PM

Whatever it takes to save the resort and move it forward, it has to be done.

Agreed!

Rocketeer

After all its in TWDC best interest that this resort flourishes.


"We're not trying to entertain the critics ... I'll take my chances with the public." - Walt Disney

DisneyManiac

Quote from: msRavenswood on October 05, 2014, 06:32:51 PM
There's a big discussion taking place on Twitter and Facebook at the moment with various rumours flying around. I think we should stay optimistic and try not to lose our heads.

Yeah noticed that, alotta buzz is going on...