Disney feuds over Hong Kong park
Two sides can't agree on how to refinance loans
More Articles:
Most Viewed:
'New Moon' wins Thanksgiving box office(3854 views)Invictus(1889 views)Hollywood sea of change(1833 views)Paramount lands 'Area 51'(1638 views)'New Moon' crosses $200 million(1410 views)Christopher Eccleston plays Lennon(1160 views) |
The park, which is 57% owned by Hong Kong and has been open nearly three years, is due to repay HK$2.5billion ($325 million) of loans in September. But the two sides can't agree on how they should be refinanced.
Tussle was revealed in a filing to the U.S. Securities and Exchange Commission as part of the Mouse House's third quarter results report.
Disney says it is willing to take on the loans and provide extra investment for the park but reports that it has met resistance from the government. If they can't agree, the park operators may have to turn to the commercial credit markets, which would likely be more expensive than credit from Disney or the government.
Disney spokesman Jonathan Friedland said its offer could give the joint venture some "financial breathing room," allowing it to shore up its balance sheet and build on the recent gains.
The park has failed to meet attendance expectations. Because of the underperformance, Disney has temporarily waived management fees and royalties.
The park could benefit from special visa dispensations that potentially allow easy access for 8 million to 16 million migrant workers in the neighboring Chinese province of Guangzhou.
