Disney borrows $ 11 billion in new debt due to corona virus shutdowns

The Walt Disney Company is raising $ 11 billion in additional debt to help the company endure post-coronary financial difficulties due to coronavirus concerns.

The Walt Disney Company borrows $ 11 billion to improve financial condition due to coronavirus shutdowns. With a total of more than 4 million cases worldwide, the coronavirus pandemic has caused a change in the travel sectors, on the stock exchange, in the healthcare sector and in the entertainment industry. To prevent further COVID 19 outbreaks, the Mouse House has closed all Disney theme parks indefinitely.

In mid-March, the World Health Organization declared the corona virus a pandemic, resulting in civilizations around the world taking additional precautions against the aggressive virus. Networks have stopped producing TV shows, blockbuster film premieres are being delayed and cinemas have closed. The Walt Disney Company experienced a financial shock due to the closure of theme parks and chose to send non-essential employees on vacation, an action that received a backlash from Disney legacy Abigail Disney. Last month, the Walt Disney Company announced to shareholders that the coronavirus pandemic would put a financial strain on its business and estimated a loss of $ 500 million. In an attempt to keep the mouse house afloat, Disney borrowed $ 6 billion last month for “general corporate purposes.“Now the price of maintaining operations has increased.

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Related: When Will Disneyland & Universal Studios Reopen?

Per THRDisney has raised $ 11 billion in new debt to deal with the financial impact of the coronavirus outbreak. Disney has contacted the Securities and Exchange Commission to receive bonds that will mature between 2026 and 2060. One of the leading rating agencies, Moody’s Investors Service, has rated Disney’s debt with an A2 rating – indicating that Disney has the highest ability to repay short-term debt. Neil Begley, senior vice president of Moody, claims that the application “…eliminates any question of whether the company has solid liquidity to cope with the black swan cycle caused by the proliferation of COVID-19. ”

Mulan release date changed

Disney picks up more debt and plans to get back into business as soon as possible. Shanghai Disney opened last week with new regulations. These new guidelines include mandatory face masks, temperature tests, and a maximum capacity of 24,000 guests. In addition to unlocking the doors of Shanghai Disney, Reservations for Disneyland Resort have reopened and the live action of the studio Mulan is still on the schedule for a theatrical release in July.

Recently, some U.S. states are lifting orders and reopening stores. Despite security measures, the reopening of hairdressing salons, restaurants and cinemas could be a precarious step at this point. It remains to be seen what lasting effects the coronavirus pandemic will have Walt Disney Company will formulate plans that will allow the conglomerate to recover and quickly repay its debts.

Next: Mulan’s new release date is too optimistic

Source: THR

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