Disney Bankrupt

Imagineer Mitch

Imagineer Mitch

Active Member
Original Poster
I've always wondered what would happen to Disney World if Disney ever went bankrupt, and i mean completely bankrupt without being able to get any money what so ever. Would they tear down Disney World? It just seems to big of place to just demolish
 
unkadug

unkadug

Follower of "Saget"The Cult
Imagineer Mitch said:
I've always wondered what would happen to Disney World if Disney ever went bankrupt, and i mean completely bankrupt without being able to get any money what so ever. Would they tear down Disney World? It just seems to big of place to just demolish
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Why would they tear it down? That would cost money that Disney wouldn't have. It would be sold off, I'm sure.
 
Computer Magic

Computer Magic

Well-Known Member
The different business units would be sold off in pieces. or someone with lots of cash could buy out all the units. In fact I think Disney would sell the business units that are making the least.
 
C

Chroniq

Member
Mitch... I'm a assuming your a teenager? If so the way to get the complete answer to your question is a take an economics course... Let me try to give you a brief synopsis.


Disney is a publicly held company, If it were to go into Bankruptcy (more debt than assets with the company deciding it can never get out of that debt), It would first go into Chapter 11 bankruptcy, which has many major faccets of it, but essentially that would give them the ability to either reorganize the company (writing off some debt, negatiating better terms with creditors) or sell the company off as a whole. They would first attempt to sell off the entire company as one unit. If that didn't work, They would next go to Chapter 7 bankruptcy, which is essentially liquidation piece by piece of each asset.. Imagine Space Mountain being sold to one company and Little Mermaid (the film) being sold to another company.

The entire park would never be destroyed or abandoned, since everything from the mattresses in the hotel rooms to the palm trees being grown at Disneys nursery has a value to it and each would be sold.

If I could make a suggestion, posting things like this in the news and rumors section is innapropriate.
----Mitch Corrected me, I was in the wrong Forum--- Thanks, Sorry
 
Imagineer Mitch

Imagineer Mitch

Active Member
Original Poster
Chroniq said:
Mitch... I'm a assuming your a teenager? If so the way to get the complete answer to your question is a take an economics course... Let me try to give you a brief synopsis.


Disney is a publicly held company, If it were to go into Bankruptcy (more debt than assets with the company deciding it can never get out of that debt), It would first go into Chapter 11 bankruptcy, which has many major faccets of it, but essentially that would give them the ability to either reorganize the company (writing off some debt, negatiating better terms with creditors) or sell the company off as a whole. They would first attempt to sell off the entire company as one unit. If that didn't work, They would next go to Chapter 7 bankruptcy, which is essentially liquidation piece by piece of each asset.. Imagine Space Mountain being sold to one company and Little Mermaid (the film) being sold to another company.

The entire park would never be destroyed or abandoned, since everything from the mattresses in the hotel rooms to the palm trees being grown at Disneys nursery has a value to it and each would be sold.

If I could make a suggestion, posting things like this in the news and rumors section is innapropriate.
Click to expand...

thanks and it wasn't posted in the news and rumors section
 
F

fosse76

Well-Known Member
Chroniq said:
Mitch... I'm a assuming your a teenager? If so the way to get the complete answer to your question is a take an economics course... Let me try to give you a brief synopsis.


Disney is a publicly held company, If it were to go into Bankruptcy (more debt than assets with the company deciding it can never get out of that debt), It would first go into Chapter 11 bankruptcy, which has many major faccets of it, but essentially that would give them the ability to either reorganize the company (writing off some debt, negatiating better terms with creditors) or sell the company off as a whole. They would first attempt to sell off the entire company as one unit. If that didn't work, They would next go to Chapter 7 bankruptcy, which is essentially liquidation piece by piece of each asset.. Imagine Space Mountain being sold to one company and Little Mermaid (the film) being sold to another company.

The entire park would never be destroyed or abandoned, since everything from the mattresses in the hotel rooms to the palm trees being grown at Disneys nursery has a value to it and each would be sold.


----Mitch Corrected me, I was in the wrong Forum--- Thanks, Sorry
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Chapter 11 is the reorganization of assets of ANY individual or corporation with more than $1 million of secured debts and less than $350,000 of unsecured debt. Chapter 11 doesn't only apply to public corporations. Since it is a reorganization, they wouldn't be able to offer up the whole Company to satisfy the debt (though they can lose the reorganized company to their creditors). Doing so would simply transfer the debt to the new owner. Chapter 11 allows them to reorganize without being harassed by creditors. Keep in mind, the Company can't make any payments to ANYONE (including employees) without Court approval. Yet they may continue to receive the services from the companies they are indebted to. If the reorganization fails, then they convert to Chapter 7, which would then require them to sell off assets to satisfy the debts. All proceeds are then divided proportionally to the creditors.

However that wouldn't gurantee continued operation of all the parks. I think that the Magic Kingdom and Epcot are the only parks that would be safe. Parks with animals are very expensive to operate, and with so little else to the Animal Kingdom, I doubt it would do half as well if it weren't a Disney park. So I can easily see a new owner sending the animals to other zoos and either investing heavily in rides or simply closing it. Disney Hollywood Studios would be in a similar boat. It's mainly a show park, and unlike Universal, has very little to offer in terms of rides and a full day of entertainment (which costs money to operate). I think if the Animal Kingdom and Studios aren't tied to the admission of Epcot and the Magic Kingdom (i.e., you can't get it with your 5-day pass), they would be gone.
 
jt04

jt04

Well-Known Member
fosse76 said:
However that wouldn't gurantee continued operation of all the parks. I think that the Magic Kingdom and Epcot are the only parks that would be safe. Parks with animals are very expensive to operate, and with so little else to the Animal Kingdom, I doubt it would do half as well if it weren't a Disney park. So I can easily see a new owner sending the animals to other zoos and either investing heavily in rides or simply closing it. Disney Hollywood Studios would be in a similar boat. It's mainly a show park, and unlike Universal, has very little to offer in terms of rides and a full day of entertainment (which costs money to operate). I think if the Animal Kingdom and Studios aren't tied to the admission of Epcot and the Magic Kingdom (i.e., you can't get it with your 5-day pass), they would be gone.
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In a "worst case" scenario I'm not sure Epcot would be safe. You know, it's just a feeling but I think the only assets at WDW that are truly safe are the Magic Kingdom, the MK resorts (including WL), Fort Wilderness, Shades of Green and the 2 golf courses, the MK monorail line, the MK parking lot, the race track land and of course Bay Lake and the Seven Seas Lagoon.

It really appears to me that Disney expanded the resort so that if worse came to worse they could sell off the rest of the resort in one big sale or broken up into smaller "lots". I also look for the Flamingo Road land to be sold next if that project does not get some momentum.

Just my musings and two cents! :)
 
goodtimes5286

goodtimes5286

New Member
Steve Jobs has too much money to let that happen

n if worst came to worst his buddy Gates would buy some stock (aka give disney more monitary capital to work with). But that would NEVER happen since Disney has historically made $5 for every $1 they spent (I was reading an article about it in economics, they are one of the BEST companys at taking a dollar and making the most off of it), so basically all of these cuts are to make there dollar per dollar go up, if they were making .90 cents on a dollar, worry, if they're making more then a dollar on there dollar, then it just means there executives arent pulling in a billion per quarter, thats all these cuts mean.....

........greed is depressing :brick:
 
jt04

jt04

Well-Known Member
goodtimes5286 said:
Steve Jobs has too much money to let that happen

n if worst came to worst his buddy Gates would buy some stock (aka give disney more monitary capital to work with). But that would NEVER happen since Disney has historically made $5 for every $1 they spent (I was reading an article about it in economics, they are one of the BEST companys at taking a dollar and making the most off of it), so basically all of these cuts are to make there dollar per dollar go up, if they were making .90 cents on a dollar, worry, if they're making more then a dollar on there dollar, then it just means there executives arent pulling in a billion per quarter, thats all these cuts mean.....

........greed is depressing :brick:
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I think this thread is talking about "worse case" such as a 1929 style depression. "Worse case" means Jobs and Gates would have little money to prop up WDW. Helping WDW would certainly not be their priority anyway in such a scenario.
 
pintraderpayee

pintraderpayee

Active Member
:cry: If we were at a point where WDW could get no money then that would mean some planet-altering event had taken place. Unfortunately, we would be worrying about survival, not WDW.:(
 

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