AMC Shares Explode on Report that Company May Avoid Bankruptcy

American movie theater chain AMC saw its shares soaring after a report in the Wall Street Journal said that the company is working on a deal to avoid bankruptcy.

According to the WSJ report, which cited sources familiar with the matter, AMC is working on a $200 million financing package.

The stock saw a gain of 21% after trading closed on Tuesday as traders reacted to the news.

The WSJ report has revealed that AMC is working on a restructuring deal, led by Silver Lake, that would have bondholders provide a $200 million loan, swapping out “their unsecured claims at a discount.” AMC would take that route over a financing offer from Apollo Global and other lenders, the Journal reported.

Shares have lost over 40% of their value this year amid the coronavirus pandemic. The company is planning to re-open some locations at the end of the month.

The company had recently proposed the reopening of “approximately 450” locations to July 30th and had previously planned to open on July 15th.

The new re-opening date will fall in line with the release of several movies including:

“Saint Maud,” premieres July 17
“Inception,” rereleases July 31
“Unhinged,” premieres July 31
“The Broken Hearts Gallery,” premieres Aug. 7
“Tenet,” premieres Aug. 12
“Mulan,” premieres Aug. 21
“Bill and Ted Face the Music,” premieres Aug. 28
“Fatima,” premieres, Aug. 28
“New Mutants,” premieres Aug. 28

Disclaimer: We have no position in AMC Entertainment Holdings Inc. (NYSE: AMC) and have not been compensated for this article.