AMC Entertainment Holdings Inc. investor Silver Lake Group LLC could get first dibs on the movie-theater chain’s assets under a proposed debt swap as the company battles to survive the coronavirus pandemic, WSJ Pro Bankruptcy reported. AMC, the world’s largest cinema operator, has shut down its more than 1,000 theaters due to the pandemic and said Wednesday it might not continue as a going concern if the temporary closures go on for longer than expected or if it can’t raise additional cash. The Leawood, Kan.-based company also launched a bond exchange proposal to entice creditors to slash debt and push out maturities. AMC would swap roughly $2.3 billion of junior debt at between 51 and 53 cents on the dollar into new securities backed by a second-priority claim on its assets, including its brand name, trademarks, property and business operations. The proposed transaction would cut AMC’s debt by slightly more than $1 billion. But the deal depends on private-equity firm Silver Lake exchanging $600 million of unsecured convertible bonds into a new security with a first lien on assets.
