Colleen Michaels/iStock Editorial via Getty Images
Confidential talks are underway between AMC Entertainment Holdings (New York Stock Exchange: AMC) and some of its lenders to reduce the company's debt load and extend short-term maturities, Bloomberg News reported on Saturday, citing people familiar with the matter.
Negotiations are underway and a A final decision has not yet been made, the people said. AMC (AMC) refused to respond to Bloomberg requests for comment, as does international law firm Gibson Dunn and Crutcherwhich represents first-lien lenders.
The discussions come at a time when the world's largest movie theater chain is grappling with billions of dollars of debt. Its long-term borrowings amount to approximately $4.5 billion, and as of March 31, the company had more than $2.8 billion in maturities due in 2026, including a $1.9 billion term loan and ~1 billion of dollars in second degree promissory notes.
In May, AMC (AMC) capitalized on a meme stock to raise $250 million in new equity capital and improve its leverage level.
