AMC is trying to stave off the final curtain.
The movie theater chain is close to hammering out a restructuring deal that would save it from bankruptcy, according to the Wall Street Journal.
The deal involves bondholders providing a $200 million senior loan and exchanging their unsecured claims for second-lien debt at an undisclosed discount. Meanwhile, Silver Lake Group, a private equity firm that has a seat on AMC’s board, will move into a first-lien position with its $600 million in convertible bonds.
AMC’s senior lenders, a group that includes Apollo Global Management, submitted their own counterproposal. Their deal would see the lenders fork over an additional $200 million in senior debt, in addition to the $200 million from bondholders, and block Silver Lake’s exchange into a first-lien position. But AMC is close to rejecting that proposal, according to the Journal.
The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. The chain expects to reopen most of its 600 U.S. theaters by July 30. [WSJ] — Erin Hudson
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