Although AMC Entertainment Holdings received a $100 million lifeline last week, it still needs $750 million more to make it through next year. Some of its lenders are thinking it may not be worth it. Three of its creditors are urging the theater operator to declare bankruptcy, The Motley Fool reported. If it agrees to do so, they will provide AMC with $1 billion of debtor-in-possession (DIP) financing. Such an arrangement allows the lenders to jump to the front of the line of all creditors who now control the company. AMC said in a regulatory filing that it has held discussions with a number of its lenders and those who hold second-tier status are supporting the theater's efforts at arranging financing to continue as a going concern. Certain first-lien creditors, however, are pushing the bankruptcy option and are dangling the DIP financing as a carrot. The New York Post identified Apollo Global Management, Canyon Capital Advisors, and Davidson Kempner Capital Management as AMC's first-lien debtholders pushing the company to go the bankruptcy route.
