Is Universal in trouble again?

With nearly $1 billion in debt, the #2 theme park Universal Orlando warns that it could be cash-strapped by next spring leaving it in a precarious position with film-maker Steven Spielberg. Pieces of the Universal could go up for sale if it can not begin to restructure it's business and get new loans.

Over $950 million of loans will need to be re-financed by the theme parks operating company according to filings with federal regulators. Universal must meet it's deadline to avoid paying an additional $500 million loan on it's property and equipment.

Getting new loans will be far more difficult because lenders are imposing stricter terms on all entertainment industries. Many of these big entertainers have been in default unable to negotiate their debts. Part of the impasse that Universal faces is the 22-year-old consulting contract with Steven Spielberg whose movies have created several themed attractions at the park. Spielberg could demand the rest of the consulting fees as a buy-out resulting in millions of dollars.

As Florida's sixth largest employer, Universal (second behind Disney) drew 10 million people last year while employing 13,000. According to park officials, Universal has met it's financial obligations said Tom Schroder.