What is happening with AMC Entertainment's bonds?

A group of AMC Entertainment bondholders has started confidential talks with the company, leading to a significant drop in its 15% bonds due in February 2029.

Has AMC Entertainment restructured its debt before?

Yes, AMC Entertainment completed a major debt restructuring deal in 2024, which allowed it to delay payments and move assets.

What were AMC's recent financial performance indicators?

In the third quarter, AMC reported declines in attendance, revenue, and earnings, citing 'industrywide softness,' though it anticipated a strong fourth quarter.

Home / Business and Economy / AMC Bonds Tumble Amid Restructuring Fears

AMC Bonds Tumble Amid Restructuring Fears

24 Jan

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Summary

Bondholders initiate confidential talks with AMC.
AMC's 15% bonds dropped significantly on Friday.
Company previously underwent a major debt restructuring.

AMC Bonds Tumble Amid Restructuring Fears

Confidential discussions have commenced between a group of AMC Entertainment Holdings Inc. bondholders and the theater chain. This development has led to a significant decline in the value of some of its notes, raising concerns about further debt maneuvers.

Specifically, holders of the 15% bonds maturing in February 2029 saw their notes drop more than 5 cents on the dollar on Friday. This sell-off highlights investor apprehension regarding AMC's strategic steps to manage its substantial debt.

AMC had previously executed a comprehensive restructuring agreement in 2024. This deal enabled the company to defer certain debt repayments and transferred theaters and intellectual property, placing them beyond the reach of some creditors. A subsequent settlement resolved litigation initiated by a group of lenders and facilitated new capital infusion.