AMC Entertainment Inc. is in talks with Apollo Global Management Inc. and other top creditors over a potential financing deal backed by the cinema chain’s European assets, WSJ Pro Bankruptcy reported. AMC, the world’s largest movie theater company, is negotiating with lenders including Apollo, Davidson Kempner Capital Management LP, and Ares Management Corp. to expand the line of credit available to the company’s U.K.-based Odeon Cinemas Group subsidiary. The company, which since October has warned of a possible bankruptcy filing as pandemic restrictions shut down theaters world-wide, has also held talks with other creditor groups and potential outside investors, the people said. AMC acquired Odeon, the largest cinema operator in Europe, in 2016. The subsidiary has a 100 million-pound revolving credit facility, worth approximately $135 million, which was fully drawn as of September. Discussions have centered on upsizing the credit facility by roughly £300 million, though the amount and structure of a potential deal are still under negotiation. AMC has been hard hit by the pandemic, which temporarily shut the doors of most of its theaters. Major Hollywood studios have either delayed releasing films or released them straight to streaming services, leaving cinemas with little content to show those viewers willing to brave a trip to the big screen.
