Euro Disney Announces Memorandum of Agreement to Strengthen its Financial
Position
and Accelerate Investment in Growth Marne-la-Vallée, June 9, 2004 - Euro Disney S.C.A. announced today that the
primary negotiating parties (the Company, The Walt Disney Company ("TWDC"),
Caisse des Dépôts et Consignations ("CDC") and the Steering Committee of its
other lenders), have approved a Memorandum of Agreement ("MOA"). The MOA
contemplates a restructuring of the Company's financial obligations as well as
new debt and equity financing. These transactions are intended to enhance the
Company's liquidity and provide capital for the Company's ongoing business as
well as investment in new park attractions and other resort assets.
The MOA is subject to certain conditions, including approval by all of the
lenders by July 31, 2004, shareholder approvals, regulatory authorisations, and
other significant milestones. Additionally, a continuing debt covenant waiver
depends upon the approval by the requisite number of lenders by June 30, 2004.
The Company believes that the approval of the MOA and the continuing waiver are
in all of the parties' best interests. In the event that such approval is not
obtained, and absent a subsequent waiver or agreement, TWDC and the Company's
other lenders would be able to demand immediate payments from the Company for
amounts owed, which the Company would not be able to satisfy.
Upon obtaining lender approvals and completion of the related documentation,
the Company plans to begin the design of new rides and attractions for the Walt
Disney Studios and Disneyland theme parks as well as other assets throughout
the resort.
André Lacroix, Chairman and Chief Executive Officer, said: "We are extremely pleased and grateful to the CDC, CALYON, BNP Paribas, the
other members of the Steering Committee and The Walt Disney Company, as we
reach this very important milestone. This Memorandum of Agreement embodies the
essential elements for Disneyland Resort Paris to pursue its long-term growth
strategy, including capital for asset additions.
We will be announcing additional details as well as the components of our new
investment plan at the appropriate time in the near future." Corporate Communication Investor Relations Philippe Marie Sandra Picard-Ramé Tel: +331 64 74 59 50 Tel: +331 64 74 56 28 Fax: +331 64 74 59 69 Fax: +331 64 74 56 36 e-mail:philippe.marie@disney.come-mail:sandra.picard@disney.com Additional Financial Information can be found on the internet at
www.eurodisney.com Code ISIN: FR0000125874 Code Reuters: EDL.PA Sicovam: 12 587 Code Bloomberg: EDL FP Euro Disney S.C.A. and its subsidiaries operate the Disneyland Resort Paris
which includes: Disneyland Park, Walt Disney Studios Park, seven themed hotels
with approximately 5,800 rooms (excluding 1,576 additional third-party rooms
located on the site), two convention centres, Disney Village, a dining,
shopping and entertainment centre, and a 27-hole golf facility. The Group's
operating activities also include the management and development of the
2,000-hectare site, which currently includes approximately 1,000 hectares of
undeveloped land. Euro Disney S.C.A.'s shares trade in Paris (SRD), London and
Brussels.
Management believes certain statements in this press release may constitute
"forward-looking statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These statements are made on the basis of
management's views and assumptions regarding future events and business
performance as of the time the statements are made. Actual results may differ
materially from those expressed or implied. Such differences may result from
actions taken by the Company, as well as from developments beyond the Company's
control, including changes in political or economic conditions. Other factors
that may affect results are identified in the Company's documents filed with
the U.S. Securities and Exchange Commission.
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