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?
The Wall Street Journal reported Tuesday that AMC Entertainment is closing in on a debt restructuring deal that would help the company avoid bankruptcy.
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’s stock 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.
Rumors speculated Amazon was circulating the company for a purchase or merger, which I wrote about for the Deseret News.
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.