Midland to sell debt in Euro Disney

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MIDLAND BANK has agreed to sell its Euro Disney loans for about 50 per cent of face value, according to sources in the secondary debt market, writes Rupert Bruce.

The sale is significant, coming so soon after the banks became aware of the scale of the theme park and hotel operator's problems in early November.

Midland's loans are said to be part of a Fr7bn ( pounds 793m) facility formed for the development and start-up costs of the Magic Kingdom theme park and secured on its assets. While Midland signed up to lend Fr187m, it is not clear how much has been used. However, the sale is said to be subject to documentation and due diligence, which means it may not be completed.

When asked to confirm or deny the sale, a Midland spokesman said: 'As far as we are concerned it is market speculation and we do not comment on market speculation.'

The preliminary version of KPMG Peat Marwick's audit of the company's financial position and capital requirements, commissioned by the banks, is due at the end of the week.