AMC Theaters Bankruptcy? 13 Things for Investors to Know

The company has stopped paying rent at some locations

AMC Entertainment (NYSE:AMC) may be looking at bankruptcy in the future.

AMC Theaters Bankruptcy? 13 Things for Investors to Know
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Here’s what investors need to know about the AMC Theaters bankruptcy news.

  • According to recent reports, the company is considering filing for Chapter 11 bankruptcy protection.
  • If the reports are true, AMC is seeking out Weil Gotshal & Manges for help with the matter.
  • However, it looks like talks of bankruptcy at the company are still only in the early stages.
  • The anonymous insider behind this news claims that an AMC Theaters bankruptcy is most likely on the way.
  • They claim this is the case due to hiring on Weil Gotshal & Manges and the company not paying rent at some of its locations.
  • It’s also worth mentioning that the AMC Theaters bankruptcy rumors come as it deals with the coronavirus from China.
  • Due to the coronavirus, the theater chain has shut down all of its locations for six to 12 weeks.
  • While some countries, such as China, are reopening theaters already, it isn’t without restrictions.
  • That includes spacing between occupants that are leaving the theaters with plenty of empty seats.
  • AMC is also unlucky as many of its theaters are located inside of malls.
  • These will be some of the last locations that reopen once the coronavirus settles down.
  • As such, it will take the theater chain sometime to get back up on its feet, if it can.
  • With that in mind, an AMC Theaters bankruptcy may be the only choice.

AMC stock was down 20.58% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

 

 


Article printed from InvestorPlace Media, https://investorplace.com/2020/04/amc-theaters-bankruptcy-things-for-investors-to-know/.

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