HONG KONG – Walt Disney and the Hong Kong government are fighting over the ongoing finance of the Hong Kong Disneyland theme park.
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 cannot agree on how it 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 additional investment for the park, but reports that it has met resistance from the government. Failure to agree may mean that the park operators have to turn to the commercial credit markets, which would likely be more expensive than credit from Disney or the government.
The park has so far failed to meet attendance expectations, though has reportedly recently been enjoying operational improvements. Because of the underperformance Disney has temporarily waived management fees and royalties.
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.
Earlier this week, the park benefited from special visa dispensations that potentially allow easy access for 8-16 million migrant workers in neighboring Chinese province of Guangzhou.
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