A medical worker wearing a mask walks near the AMC cinema in Times Square in the middle of the coronavirus pandemic on May 7, 2020 in New York City.
Alexi Rosenfeld | Getty Images
AMC Entertainment stocks rose up to 21% after Tuesday's regular trading ended after the Wall Street Journal reported that the cinema company was on the verge of a deal to avoid short-term bankruptcy.
The journal quoted people familiar with the matter and said AMC was working on a restructuring agreement led by Silver Lake, in which bondholders would grant a $ 200 million loan and exchange "their unsecured claims at a discount". AMC would pursue this path through a financing offer from Apollo Global and other lenders, the journal reported.
At the close on Tuesday, AMC had lost 40% of its value this year. The company was hit by the corona virus, which forced cinemas across the country to close in March. AMC says it will begin reopening the Waves theaters on July 30, about two weeks later than expected. Even if theaters reopen for the first time in months, there is no guarantee that consumers will quickly be surrounded by others.
AMC stocks rose up to $ 4.99 in extended trading after closing at $ 4.13. The company's market capitalization is less than $ 500 million.
SEE: AMC is delaying the opening of 450 US theaters until July 30