AMC Theaters Considers Bankruptcy After Moviegoers Stay Home
- Creditors map out strategy that could include DIP lending
- Other options include capital raise, renegotiating leases
A customer visits the concession stand at an AMC movie theater in Austin, Texas, U.S., on Aug. 20.
Photographer: Sergio Flores/BloombergThis article is for subscribers only.
AMC Entertainment Holdings Inc. is considering a range of options that include a potential bankruptcy to ease its debt load as the pandemic keeps moviegoers from attending and studios from supplying films.
Lenders to the world’s biggest cinema chain have held preliminary talks among themselves about providing the movie-theater company with financing if it decides to file for Chapter 11 court protection, according to people with knowledge of the matter. The fresh cash would keep AMC in business while it crafts a recovery plan, the people said.