Walt Disney Co. announced Monday a proposed $1.25 billion investment in its struggling Euro Disney operation and the Disneyland Paris theme park.
In a two-sentence statement, the Burbank entertainment company said the recapitalization plan will improve Euro Disney’s financial position. Disney owns 40 percent of Euro Disney, with the rest owned by shareholders in Euro Disney S.C.A., which trades on the Euronext Paris exchange.
The refinancing proposal requires approval from shareholders by the end of November.
“With this effort, we are demonstrating The Walt Disney Company’s continued confidence in Disneyland Paris, which remains the number one tourist destination in Europe,” the statement said.
Disneyland Paris opened in 1992 and has struggled financially for much of that time from issues tied to its debt. Euro Disney last turned a profit in 2008 and has posted losses every year since then, according to the New York Times.
Other media reports say the theme park is suffering from declining attendance. Disneyland Paris drew 14.9 million visitors last year and expected between 14.1 million and 14.2 million this year, according to media reports.
In 2012, Disney refinanced about $1.6 billion in debt for Euro Disney.
Shares closed up 11 cents, or a fraction of one percent, to $88.56 on the New York Stock Exchange.
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