The Walt Disney Company announced Wednesday that it has agreed to pay $100,000 to a creditor for the collection of a $1 billion debt that it owed the Walt Disney Parks & Resorts.
The settlement comes as the Walt D. Disney Company and Disney Parks and Resorts, Inc. have struggled to find a solution to the debt that has been the subject of numerous investigations by the Department of Justice.
The debt collection agreement announced Wednesday came after Disney and the Disney Parks Company reached a settlement in December 2017 that would see Disney pay a $10.5 million fine to the Department.
Under the agreement, Disney and Disney parks will pay $5 million toward the debt collection.
The company also agreed to work with the Department’s Consumer Financial Protection Bureau to conduct a “consumer education” campaign to educate consumers on the debt collector’s responsibilities and potential penalties if they do not comply with the collection.
Disney Parks and Resort, Inc., which manages the parks, has a debt collection program under the agreement.
In 2018, Disney Parks said it had identified approximately $1.1 billion in debt that was owed to collection agencies.
The parks and resorts, along with Disney, will each pay an additional $3.5 billion to cover their debt and will be reimbursed for any additional costs incurred by the collection agency.
Disney also agreed in December to pay up to $400 million in legal fees to the DOJ.