AMC Uses Theaters to Help Restructure Billions in Debt
- CEO Adam Aron says deal makes AMC ‘ever more confident’
- Agreement provides avenues to reduce company’s heavy debt load
AMC has been chipping away at its maturities through other swaps and buybacks.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
AMC Entertainment Holdings Inc. said it reached a sweeping restructuring deal with creditors that will let it delay repayment of more than $1.6 billion of debt for several years, buying it time to execute a turnaround.
The world’s largest movie theater chain reached an agreement that calls for swapping $1.2 billion of term loans due 2026 for new loans due three years later and undertaking a similar swap with $500 million of junior notes, according to a company statement. Exchangeable notes could also be swapped for stock, and some additional 2026 debt may be pushed out to 2029.