TOKYO: Oriental Land Co., the operator of Tokyo Disney Resort, which has been hit hard by the outbreak of the novel coronavirus, has requested a 200-billion-yen credit line from lenders including Mizuho Bank, Jiji Press learned Friday.
The company has been suspending operations at Tokyo Disneyland and Tokyo DisneySea, located in the city of Urayasu, Chiba Prefecture, east of Tokyo, since late February amid the virus crisis.
The other leaders participating in the credit line program will likely include Sumitomo Mitsui Banking Corp., Sumitomo Mitsui Trust Bank and a regional bank, according to sources familiar with the matter.
Oriental Land’s cash holdings stood at some 260 billion yen at the end of March. A credit line allows borrowing up to the limit.
In April, the company reported a consolidated net profit of 62.2 billion yen for fiscal 2019, down about 30 pct from the previous year. On May 8, Oriental Land said it will put some 5,400 employees on temporary leave.
The Japanese government may lift its coronavirus state of emergency in Tokyo and three neighboring prefectures, including Chiba, as well as in the northernmost prefecture of Hokkaido, as early as Monday.
Even if the Disney theme parks reopen after that, however, it is unclear whether they will be able to lure back customers as consumer sentiment has slumped and concerns linger over a second wave of infection.
In Japan, many companies that had to suspend or scale back operations amid the epidemic have asked banks to set up credit lines to increase cash in hand.