Latest Loss Deepens Gloom at Euro Disney

Deepening the financial gloom at the Magic Kingdom outside Paris, Euro Disney said Wednesday that its first-quarter net loss grew to $93.7 million.

The deficit over the first three months of its 1994 fiscal year ending Dec. 31 was up from a loss of $71.7 million in the year-earlier period.

In another development, a committee representing about 60 creditor banks was given the green light Wednesday to proceed with restructuring talks with the U.S.-based Walt Disney Co., said a communique by the panel.

Representatives of the banks, who together hold roughly two-thirds of the $3.5 billion in Euro Disney debt, made the decision after hearing the results of an independent audit. No details were made public.

Walt Disney, which holds 49% of Euro Disney’s stock, and the banks are to decide how much each side would have to concede to keep the park running.

Euro Disney, 18 miles east of Paris, blamed the deterioration on a decline in operating revenues. They fell to $140 million from October-December, down from $160 million in the 1992 period.

This reflected product repositioning and price cuts implemented during the quarter, the firm said in a statement.

Euro Disney reported a stunning loss of $905 million for its first full fiscal year of operation.

The park, which opened in April, 1992, said that while attendance was on track, people were spending less money and fewer were staying at Euro Disney’s six hotels than had been expected.