AMC stock jumps 14% after hours on report of new financing plan
Shares of AMC Entertainment Holdings Inc. (AMC) , which owns the world's largest movie theater chain, surged nearly 14% in after-hours trading Tuesday following a Wall Street Journal report (https://www.wsj.com/articles/cinema-chain-amc-nears-financing-deal-to-avert-near-term-bankruptcy-11594161092?mod=searchresults&page=1&pos=1) that said the company was nearing a restructuring deal that would stave off bankruptcy in the near term. AMC will reportedly reject a financing offer from lenders including Apollo Global Management, in favor of a $200 million financing effort led by Silver Lake Group, coming on top of $200 million in financing from junior bondholders. AMC has seen its bottom line crushed as it had to shut more than 1,000 theaters worldwide due to the coronavirus pandemic. Its U.S. theaters are now scheduled to reopen on July 30 (http://www.marketwatch.com/story/amc-delays-reopening-of-us-theaters-by-about-2-weeks-2020-06-29). In June, AMC warned of a first-quarter net loss of as much as $2.417 billion (http://www.marketwatch.com/story/amc-entertainment-warns-of-first-quarter-loss-as-theaters-remain-closed-during-coronavirus-pandemic-2020-06-03).
-Mike Murphy; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 07, 2020 20:47 ET (00:47 GMT)
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