The New York Post reports:
AMC Entertainment is inching closer to a possible bankruptcy. The nation’s largest movie theater chain, whose cinema houses have been shuttered nationwide since mid-March because of the coronavirus, is in talks to hire law firm Weil Gotshal & Manges to explore a potential Chapter 11 filing, The Post has learned.
Weil Gotshal’s team is headed up by star lawyer Ray Schrock, who lately has worked as bankruptcy counsel to California utility PG&E, the Fairway supermarket chain and retail icon Sears Holdings, many of whose stores got taken over by billionaire Eddie Lampert.
Last week, AMC’s lenders hired law firm Gibson Dunn & Crutcher to advise the chain on a possible restructuring, according to the Wall Street Journal. As reported by The Post, experts note that AMC, which has a debt load of $4.9 billion, is at risk of breaching its debt covenants as it burns through cash amid the coronavirus crisis.