Euro Disney, the theme park complex on the outskirts of Paris, has agreed a €1bn (£784m) debt restructuring deal backed by its biggest shareholder, Walt Disney, reports The Telegraph.
Walt Disney owns a 39.8pc stake in the Parisian theme park and a further 10pc is in the hands of Saudi billionaire Prince Alwaleed. American fund manager Invesco built up a 5pc stake in the business earlier this year to become the third biggest investor.
Euro Disney said that it will embark on a €420m (£329.3m) rights issue open to all investors, backed by Walt Disney, which will improve the cash position of the Paris business by €250m (£196m).
In addition, around €600m (£470m) of the group's debt owed to Walt Disney will be converted into equity, while credit lines extended to Euro Disney by its parent will also be consolidated.
Shares of Euro Disney slumped by 14pc in Paris on Monday morning to €2.93.
“This recapitalization plan would improve Euro Disney Group’s financial position and enable it to continue investing in the guest experience", Walt Disney said in a statement.
Read more of this report from The Telegraph.