Colleen Michaels/iStock Editorial via Getty Images
Confidential discussions are underway between AMC Entertainment Holdings (NYSE:AMC) and some of its lenders to reduce the company’s debt load and extend near-term maturities, Bloomberg News reported Saturday, citing people familiar with the matter.
The negotiations are in progress, and a final decision hasn’t yet been made, the people said. AMC (AMC) refused to respond to Bloomberg’s requests for comments, as did international law firm Gibson Dunn & Crutcher, which represents first-lien lenders.
The discussions come when the world’s largest movie theater chain struggles with billions of dollars in debt. Its long-term borrowings stand at roughly $4.5B, and as of March 31, the company had more than $2.8B in maturities due in 2026, which included a $1.9B term loan and ~$1B in second-lien notes.
In May, AMC (AMC) capitalized on a meme-stock to raise $250M in new equity capital and improve its gearing level.