AMC Delays U.S. Theater Openings Until Mid-to-Late August

The last plan was for a July 30 opening date, which already represented a delay from the previous plan of July 15.
Publish date:

Shares of AMC Entertainment Holdings  (AMC) - Get Report rose Thursday, after the world’s biggest movie-theater chain announced another delay in reopening.

It now plans to open its U.S. theaters in “mid-to-late August,” according to a company statement. The last plan was for a July 30 opening date, which already represented a delay from a previous plan of July 15.

The coronavirus pandemic, of course, has spiked in recent weeks, and movie makers have delayed film releases. AMC theaters closed in March.

“This new timing reflects currently expected release dates for much anticipated blockbusters like Warner Bros.' Tenet and Disney's Mulan, as well as release dates for several other new movies coming to AMC's big screens,” the company said.

Last week, AMC unveiled a debt restructuring. An ad hoc group holding 73% of its $2.3 billion in senior subordinated notes agreed to let AMC “restructure a substantial majority of these debt securities,” the company said in a statement.

Under the terms, the face amount of AMC’s total debt would be reduced by between $460 million and $630 million, depending on how many other lenders enter the exchange, the company said.

But Bloomberg reported Wednesday that a group of AMC Entertainment Holdings Inc. lenders opposed to the restructuring say AMC violated its credit agreement by not giving enough information about the move.

The group is dealing with the situation as if AMC is still in default, knowledgeable sources told Bloomberg.

AMC shares recently traded at $4.05, up 0.5%. The stock has plunged 44% year to date.