Euro Disney announces one billion-euro recapitalisation plan

Euro Disney on Monday announced a one billion-euro recapitalisation plan to help the company overcome poor performance driven by a slump in visitors.

Premiere of the new Disney Dreams show as part of the 20th anniversary celebrations of Disneyland Resort in Marne-la-Vallée, outside Paris, 31 March 2012. Reuters/Benoit Tessier

The one billion-euro deal backed by its parent company, the American based Walt Disney Co, includes a share sale of 420 million euros and a debt restructuring to help the European company invest in the business and boost visitor numbers.

Euro Disney - based in Paris -  is the biggest tourist attraction in Europe with more than 275 million visitors since it opened in 1992.

The company has struggled during the economic downturn and has now 1.75 billion euros of debt.

Euro Disney is 40 per cent owned by parent company Walt Disney and 10 per cent by the Saudi prince Al Waleed bin Talal.

The share sale would improve the cash position of Euro Disney by about 250 million euros and in addition about 600 million euros of the group's debt owed to Walt Disney will be converted into equity, the company said in a statement.