AMC Entertainment Holdings Inc. is seeking to secure rescue financing while renegotiating terms with lenders to help it get through the coronavirus pandemic, which has forced it to close down its cinemas world-wide, WSJ Pro Bankruptcy reported. The company said on Thursday that it is launching a private offering for a new $500 million secured bond. AMC’s more than 1,000 movie theaters have been shut through at least the end of June. In the meantime, AMC is bringing in effectively zero revenue, the company said. In addition to the new debt offering, AMC seeks to negotiate with its existing revolver lenders to waive requirements regarding its current financial standing. Failing to obtain the waivers could result in a debt default, the company said. While the new liquidity jolt and more flexible terms from lenders could help the company get through the near term, AMC faces uncertainty about when it can reopen its theaters.
