Disney Bondholders are Panicked

Bondholders of Disney debt are panicked over the fight as to who will be responsible for the over $1 billion dollar in bonds and interest due: With investors asking, who will be held accountable for repaying nearly $1 billion in municipal debt used to build the infrastructure surrounding the massive Disney World theme park, the Journal is reporting, "One of the bill’s sponsors is now considering re-establishing a watered-down version of Reedy Creek to unwind the legal mess. "

According to the report, Reedy Creek bonds are plunging in value over repayment concerns.

“Reedy Creek bonds maturing in 2028 traded at 87.5 cents on the dollar Thursday and Friday, down from about 100 cents in January, according to Municipal Securities Rulemaking Board data. Two major ratings firms have flagged the bonds for potential downgrade, saying it isn’t exactly clear who owes investors their money,” the Journal’s Giller explained.

https://www.msn.com/en-us/travel/news/ron-desantis-war-on-di…

I wonder if Disney could sue DeSantis and the Fl GOP legislature over the loss in value on these bonds?

OTFoolish

Walt,

I wonder if Disney could sue DeSantis and the Fl GOP legislature over the loss in value on these bonds?

No, Disney has no stake in those bonds whatsoever, and thus does not have standing to sue.

But the bond holders would have standing to sue, either individually or as a class action on behalf of all bond holders, if the state does not resolve the issue.

Norm.

I wonder if Disney could sue DeSantis and the Fl GOP legislature over the loss in value on these bonds?

The value that bonds trade at in the market really doesn’t concern Disney.

tecmo