A group of AMC Entertainment Holdings Inc. bondholders have submitted an alternative proposal to the company’s distressed-debt exchange offer in an effort to avoid taking a steep haircut, Bloomberg News reported. The plan from the creditors, who are working with law firm Milbank, would give them potential equity in the struggling movie theater chain and greater possible upside in a recovery. AMC said earlier this week that it expects to be fully reopened worldwide next month. The proposal has been submitted to AMC’s investment bank Moelis & Co. for review. Earlier this month, AMC proposed a swap that would require investors to take a roughly 50 percent cut on the face value of four subordinated notes denominated in dollars and pounds. Those bonds sit below other debt in line for repayment, and the three dollar issues are trading at deeply distressed levels ranging from 35 cents to 36.5 cents on the dollar, according to Trace.
