AMC facing creditor resistance on proposed personal debt swap, report suggests

AMC facing creditor resistance on proposed debt swap, report says

AMC multiplex motion picture theater.

NicolasMcComber

AMC, the most significant motion picture theater enterprise in the U.S., is finding pushback from lenders, according to the Wall Avenue Journal, as it seeks to regain a foothold just after staying forced to shutter all of its U.S.-primarily based cinemas throughout the coronavirus outbreak.

On Wednesday, the Wall Road Journal claimed that collectors, which include David Einhorn’s Greenlight Money, are refusing to go together with AMC’s debt swap proposal.

Greenlight declined to comment on the report.

The proposed debt swap would slice about $1 billion of AMC’s $5.1 billion in credit card debt and requires unsecured bondholders to give up their statements at a price cut and get securities valued at in between 51 and 53 cents on the greenback, the publication noted. That would be backed by a second-priority declare on collateral, together with AMC’s brand name name and other assets.

Beneath the proposal, the Wall Avenue Journal mentioned, trader Silver Lake would trade its convertible bonds into new securities with a initially precedence assert on belongings. 

AMC options to reopen most of its U.S. and U.K. theaters forward of July 17, however, there are nonetheless inquiries about if moviegoers will flock again to cinemas.

In the initial quarter, AMC’s whole income fell approximately 21.6% to $941.4 million, missing analysts’ estimates of $951.4 million, in accordance to Refinitiv knowledge. Furthermore, the firm’s net decline widened to $2.18 billion.

Go through the comprehensive report from the Wall Road Journal.

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Cory Weinberg

About the author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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