$AMC Bonds are trading between 10-15% recovery. The cap table is quite ugly - amazing there’s still $400m equity value here. Notice the company didn’t update revenue decline versus last year, just attendance being -85%. Almost certainly means revenue per moviegoer is way down too. The 8k today is management sending a strong message to equity holders. Next we’ll likely see a story about management getting incentive bonuses to stay on through a bankruptcy filing. I feel bad for the management and the longs here - Covid isn’t their fault and unlike airlines the feds see no need to save movie theaters. Just like we saw with $MNK, management probably needs a much lower stock price so they can reorganize while minimizing their own personal legal risk. The next few weeks should bring a drumbeat of negative stories imo. Good luck to all!
4 Likes