, which owns $600 million of AMC debt and has a seat on the board, share in the collateral pledged to them as part of the restructuring — something the Apollo group, which also includes Davidson Kempner Asset Management and Ares Management, oppposed, the WSJ said.
The layers of debt, from senior to subordinated, determine who is first in line to get paid back in a bankruptcy. The fresh cash is key with theaters, which closed in March, not set to reopen until July 30 as COVID-19 resurges in areas across the country and studios postponed new releases. AMC, which had significant debt heading into the pandemic following a string of acquisitions, faced a dramatic cash crunch when revenue dried up suddenly.
The shares were up 10.4% at $4.56 in eaerly trading. They are off lows of near $2 in April but down from over $7 at the start of the year.