jetcityimage/iStock Editorial by way of Getty Pictures
AMC Leisure (NYSE:AMC), the world’s largest cinema chain, is beneath no threat of an imminent restructuring or chapter, in accordance an individual acquainted.
AMC (AMC) second-lien holders are mentioned to be engaged on artistic methods to scale back the theater chain’s debt and lift new cash for the corporate, an individual working intently on an change proposal informed In search of Alpha. The efforts are anticipated to scale back AMC’s debt and improve runway and liquidity.
An settlement with second lien holders may occur over the subsequent two months, the individual acquainted defined.
The replace comes after Reorg earlier Wednesday revealed an article that first-lien lenders and second-lien lenders are working with separate restructuring advisors on account of potential liquidity issues, a report which appeared to contribute to the 10% selloff in AMC inventory on Wednesday.
The primary-lien holders are mentioned more likely to have organized to guard themselves in opposition to a second-lien change, the individual acquainted mentioned.
AMC did not return In search of Alpha electronic mail request for remark.
The report comes after AMC shares plunge 64% this yr and have dropped 85% from their all-time excessive in June 2021 amid the meme-stock frenzy.
AMC Leisure (AMC) brief curiosity is 22%.
AMC CEO Adam Aron tweeted in September that retail traders had let AMC “increase boatloads of money” as he tried to reassure traders within the wake of Cineworld Chapter 11 chapter submitting.
