AMC surges following WSJ report that it can be doing work to stay away from individual bankruptcy

AMC surges after WSJ report that it's working to avoid bankruptcy

A health-related employee donning a mask walks around the AMC movie theater in Moments Square amid the coronavirus pandemic on May well 7, 2020 in New York Metropolis.

Alexi Rosenfeld | Getty Images

AMC Amusement shares jumped as much as 21% after the close of common investing on Tuesday pursuing a tale in the Wall Road Journal that the film theater organization is nearing a deal to keep away from close to-time period individual bankruptcy.

The Journal, citing men and women acquainted with the make a difference, mentioned AMC is operating on a restructuring offer, led by Silver Lake, that would have bondholders present a $200 million mortgage, swapping out “their unsecured promises at a lower price.” AMC would choose that route over a financing give from Apollo International and other creditors, the Journal documented.

As of Tuesday’s close, AMC had lost 40% of its worth this calendar year. The enterprise has been battered by the coronavirus, which forced film theaters across the region to shut in March. AMC suggests it will start off reopening theaters in waves on July 30, about two months later on than it previously envisioned. Even with theaters opening up for the initial time in months, you will find no warranty that consumers will rush to be indoors surrounded by others.

AMC shares rose as significant as $4.99 in prolonged trading after closing at $4.13. The firm’s sector cap is underneath $500 million.

Observe: AMC delays opening of 450 U.S. theaters until July 30

About the author: Seth Grace

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