AMC Entertainment (AMC) is increasingly likely to file for bankruptcy. The company has minimal revenues, leaving it unable to service its sizeable debt. While there is a chance that a new debt or equity raise would buy them time, the effect on the equity would likely be highly unfavorable.
The Wall Street Journal reported today that its creditors have hired restructuring advisors and noted that AMC’s junior bonds recently traded at 40 cents on the dollar.
We are moving our rating on shares of AMC Entertainment (AMC) to a SELL.