Euro Disney back on steady ground?

When the Imagineers build Euro Disneyland (now known as Paris Disneyland) they built the most marvelous and beautiful magic kingdom yet. Alas, the Disney Company built about twice as many hotel rooms as they needed. The cost of the hotels, and to a lessor extent, the cost of building a fully realized magic kingdom, left Euro Disney with heavy loads of debt.

Sure the park itself quickly became very profitable, but it never seemed to make enough money to pay off more than just the interest on the debt. They got a $1 billion dollar bailout from a Saudi Prince, but they still needed to fully utilize those extra hotel rooms; so it was decided to spend money and capitalize their way out the debt. First the park got a few new rides, then they built a second gate (although every review says it hardly qualifies as even a half-day park). And the numbers improved. But still they’re having problems paying down the debt. What to do?

How about issue stock worth 300 million euros and try to capitalize some more? Think that will work? They obviously do. (via LP)

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