In the wake of a S&P Global report that forecasted AMC Entertainment’s depletion of cash by mid-summer and its potential inability to re-open by June, media reports have already written the chain’s obituary.
While distribution and rival exhibition sources wouldn’t be shocked if AMC files Chapter 11 in the near future, that’s not necessarily a scarlet letter for the biggest theater chain in the world. Rather it’s the best thing that could happen for AMC which is saddled with $4.9 billion debt and currently valued at $327.3M. Last Wednesday, the Wall Street Journal reported that lenders for the Leawood, KS-based chain have hired law firm Gibson, Dunn & Crutcher LLP for advice on expected restructuring negotiations. . . . more