Euro Disney strikes deal for new cash

OVERBORROWED theme park operator Euro Disney has drawn up a financial restructuring that would allow new investment to enhance the attractions of Europe's top resort.

The deal is expected to include a e250m (£167m) rights issue to raise extra cash to run the Disneyland resort at Marne la Vallee, north of Paris, and to fund investment in new park attractions and other resort assets.

The plan to invest further in the park, which owes e2.4bn and last year lost e45m, comes despite a fall in revenues after the opening of the company's-second adjacent theme park two years ago.

Euro Disney said a memorandum of understanding had been signed with US part-parent Walt Disney, owner of 39% of the company, and its two biggest banking creditors.

They are French State bank Caisse des Depots et Consignations, owed e900m following a bailout in the 1990s, and Calyon Corporate and Investment Bank, which leads on behalf of other lenders. The deal must be ratified by the banking syndicate by 31 July.

With 12m visitors a year, the resort is Europe's biggest tourist attraction. It has 5,800 hotel rooms, two convention centres and a 27-hole golf course.