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Euro Disney reports credit troubles

While the US Disney Parks report a light at the end of the recession tunnel, Disneyland Paris sees only trouble coming down the tracks. Apparently when the economy hits the skids, people stop coming to your theme park. This is bad if you just invested a ton of money in your second gate hoping it would draw people and pay down your previous debt. That’s exactly the situation Euro Disney, the company that operates Disneyland Paris resort, found itself in.

So what does this mean? It means the company could be ready to default on its debt again. This is bad because the park has a series of goals to meet to continue making its numbers. Of course, no one planned for a global recession when those goals were set up.

What happens if Disneyland Paris fails to meet those goals? Well, I don’t see The Walt Disney Company letting the park fall into bankruptcy and possibly receivership, but none of the options are all that pleasant.

(via the UK Telegraph)