Jul 8, 2020 - Economy

AMC Entertainment closes in on deal to avoid bankruptcy

Illustration of a movie theater marquee with question marks on it

Annelise Capossela/Axios

AMC Entertainment (NYSE: AMC) is nearing a restructuring deal that would let it avoid bankruptcy, per the Wall Street Journal.

Why it matters: AMC is the country's largest cinema chain, last year serving more than 250 million U.S. attendees, but its screens have been dark since the pandemic began.

  • More movies: AMC and other theater owners yesterday sued New Jersey's governor for blocking them from reopening. In Canada, Cineplex said it plans to raise C$275 million in new debt, as it continues a legal battle over its failed takeover by Cineworld.

The bottom line: "The proposed deal would require bondholders [including Apollo Global Management] to provide a $200 million senior loan and to swap their unsecured claims at a discount for new, second-lien debt, people familiar with the matter said. Private equity firm Silver Lake, which has a representative on the company's board and owns $600 million of convertible bonds, would swap for first-lien debt." — Alexander Gladstone, WSJ

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