Lenders to AMC Entertainment Holdings Inc. tapped Gibson Dunn & Crutcher LLP to help advise them after the virus pandemic forced the heavily indebted chain to shutter its U.S. movie theaters, choking off revenue, Bloomberg Law reported. The term-loan lenders engaged the law firm as a pre-emptive measure for talks with AMC’s management that are ongoing. The company has more than $5 billion in debt outstanding. AMC closed all of its approximately 600 U.S. locations last week after public officials around the world placed limits on public gatherings to prevent the spread of the Covid-19 virus. AMC now has “no revenue and substantial fixed costs,” which has left it scrambling to preserve cash, the company has said. The chain also drew all remaining available amounts under its credit facilities as a precautionary measure to increase its cash position and preserve financial flexibility in light of the Covid-19 outbreak, according to a company filing.
