AMC Entertainment is reportedly nearing a deal that would help the company avoid bankruptcy despite its theaters being shut down due to the coronavirus pandemic.
What’s going on?
AMC’s deal includes a $200 million loan from bondholders, who would trade “their unsecured claims at a discount,” according to WSJ. This is different than financing offers from other lenders.
AMC’sstock jumped 21% because of the news.
Back in May, reports surfaced that AMC Entertainment might might got into bankruptcy, especially after the coronavirus pandemic left movie theaters closed down, as I reported for the Deseret News. AMC secured a slight boost from a debt sale and applied for federal aid.
The company said it would reopen its theaters at the end of July. AMC originally planned to reopen theaters in mid-July. But the company changed its tune after Disney delayed “Mulan” to Aug. 21 and Warner Bros. delayed “Tenet”to Aug. 12.