Euro Disney Gains Extension on Debt

Euro Disney, Europe’s largest theme park operator, said creditors granted it two more months to renegotiate the terms of its loans, buying the unprofitable French company time to avoid default.

Euro Disney, which is 39% owned by Walt Disney Co., has until May 31 to work out a plan with lenders to repay a $207-million debt due in June.

Without a plan by then, it would be “unable to meet all of its debt obligations,” Euro Disney said.

The waiver on existing loan commitments and a new credit facility from Walt Disney provide Euro Disney some respite after its loss widened last year because of a slump in tourism.