Disneyland Research

Legislative Council Secretariat IN 1/99-00 INFORMATION origin Disneyland Paris: virtually Basic Facts 1. Background 1.1 Disneyland Paris candid on 12 April 1992. It is turn up 25 km east of Paris, at a lowly farming town. negotiation between Disney and the french governing body started in the early 1980s and an agreement was signed by the cut Prime see Laurent Fabius and Walt Disney Chairman in 1985. At that time, the French government called it the largest investment in recent history in France. 1.2 At first, the zip fastener cost was estimated to be about US$1 zillion and the original name was Euro Disney. Initial fiscal arrangement was that Disney would kick in 49% equity in the project and the French government would put in a interchange grant and a loan and would finance much of the infrastructure. This was the uttermost of the French governments matter in the park. Euro Disney was to be run as a nongovernment concern. 1.3 When the typography park w as built, cost escalated to US$5 billion imputable to a number of design and pull changes.

Between 1992 and 1994, a combination of reasons led to financial encumbrance at Euro Disney: the US$4 billion debt posed a huge financial burden on the park, absorb company were double that estimated, tourer spending was reject because of recession in Europe, half the tax revenue projected to come from real demesne development did not materialize as a declaration of the collapse of the blank space market in France, a well-set franc which made it expensive for visitors, and low attendance which fell on a lower floor the expected annual 10 million for the perio! d. 1.4 In 1994, a huge financial restructuring took place to reduce debt by ? ? US$1 billion. This gave Euro Disney 24 months forgiveness from endureing interest on roughly US$3 billion of the loans, on with a 3-year postponement on paying back the principal. The consortium of 60 banks also agreed to arrange for buyers of 51% of a US$1.2 billion rights offering that would be used to pay downwardly debt. Disney...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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