Banks Approve Plan to Rescue Euro Disney

The 61 creditor banks of the ailing Euro Disney theme park have agreed to a financial restructuring plan aimed at reviving the debt-ridden resort, two of the banks said Thursday.

Banque Nationale de Paris and Banque Indosuez said a sufficient number of banks have agreed to cover 51% of a capital boost for Euro Disney.

The rescue package features a $1.05-billion capital increase through an offering of stock planned for this summer. Shareholders have yet to consider the overall plan.

Euro Disney, 20 miles east of Paris in Marne-La-Vallee, has accumulated enormous debt since its opening just over two years ago, although it has become the favorite short-trip destination in Europe.

Earlier this month, Euro Disney announced an operating loss for the first half of 1994 of $183.9 million, with revenue dropping 12.4% to $276 million. It has a total debt load of $3.7 billion.

Euro Disney blames its problems on the European recession, which led to falling real estate prices and visitors who scrimp once they get to the park.

A preliminary agreement between major creditor banks, Euro Disney and parent company Walt Disney Co., which owns 49% of the park, was reached March 14, but it was contingent on approval by the 61 creditor banks.