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Disney enter 5 billion credit agreement.


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  • Disney enter 5 billion credit agreement.

    Disney's theme parks business has taken a particularly severe hit as lockdowns have restricted people's movement and gatherings in order to curb the spread of COVID-19. The company said in a filing the credit agreement, which has terms similar to another one it entered on March 6, will mature on April 9, 2021, adding that the fund could be used for day to day operations. Citibank N.A. served as the designated agent for the agreement, Walt Disney said.

    I think some (obviously this was done to help their liquidity, im aware) of this money will be used to make sure that the park opens up with the same amount of entertainment offerings that were there when the park closed.

  • #2
    In searching today's business media, I can find neither statements from Disney nor speculation from business insiders on what it will use the money for, beyond "general corporate purposes" and "day to day operations." Given the enormous number of unknowns the Company faces in re-opening its domestic resorts, it seems baseless to assume that any of the money would be earmarked "to make sure that the park opens up with the same amount of entertainment offerings that were there when the park closed." It seems even less likely when one considers that entertainment was on the chopping block to reduce expenses before the Covid-19 crisis began.
    Last edited by Mr Wiggins; 04-13-2020, 05:32 PM.
    "Disneyland is often called a magic kingdom because
    it combines fantasy and history, adventure and learning,
    together with every variety of recreation and fun,
    designed to appeal to everyone."

    - Walt Disney

    "Disneyland is all about turning movies into rides."
    - Michael Eisner

    "It's very symbiotic."
    - Bob Chapek


    • #3
      You're right, how dare I speculate or hope for a Disneyland thats worth coming back to. Shame on me.
      that's why i said "I think" instead of "I know" I'm obviously not speaking for the Walt Disney company.
      Last edited by nickdean707; 04-13-2020, 06:47 PM.


      • #4
        Not surprised since I've been reading that's about how much they are guesstimating to lose for the fiscal year. Disney's good for it, anyone giving out loans knows that. They have a strong product and will eventually bounce back. It'll be rough waters ahead, but they will, especially as folks start to gain more confidence with their trips outside and with their spending (however long that will be). Obviously I have no sources but if they stand to lose $5 billion this year and are taking out a loan for the same amount, then my head space tells me that they will use that money to resume "business as usual" as best they can. At least, that makes sense to me, using the money to try their best to carry on as normally as they can. I'm sure stuff will be cut, obviously (Iger talked about cutting costs and a "leaner" company going forward) but there's bound to still be a handful of entertainment options (though how you view them or how they're implemented may be heavily altered) available in the parks.

        Again, all until things settle down. No one knows how long that'll be but we'll get there eventually. For now we'll just have to endure the storm but someday when/if a vaccine is created or this thing dies down, confidence will go up all around and things once gone will start to slowly reappear. I'm hopeful that includes entertainment as well, eventually.


        • #5
          Given that the company has virtually no revenue coming in and most likely still has a lot of financial obligations, I'm guessing most of the money will go for things like rental/lease payments, loan payments, utilities, insurance and legal premiums, health insurance and other benefits for employees, required maintenance, and payroll for non-furloughed employees. Then there will be "restart" costs when things come back online: things like food and other supplies. But there's no doubt there will be some major cost cutting - now and when the parks open. This won't be 'business as usual.' The company is hemorrhaging right now.


          • #6
            The 5 billon was to keep them from drowning in debt and to meet obligations. I don't see one dime of it going to enhance the parks.
            Last edited by tarheelalum; 04-21-2020, 08:52 PM.


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