AMC: Bankruptcy Is Almost Certain

Summary

• AMC can proceed with its capital raising plan after the status quo order has been lifted, and the common shareholder settlement has been approved.
• AMC is facing another lawsuit from APE shareholder that could double the settlement value.
• AMC has almost $5 billion in debt, which I believe it won’t be able to pay off even after it executes its capital raise plan.
• The writers' strike and the rise of streaming platforms may see AMC’s revenue decline for the next couple of years.

Tom Cooper

Thesis

The shareholder lawsuit against AMC Entertainment Holdings, Inc. (NYSE:AMC) has delayed its plans to raise capital before the historically slow end of August and September. Additionally, the company will have to pay $129 million in shares, which could double

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.