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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 at a time when the world’s largest movie theater chain is grappling with billions of dollars of 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.
